[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2731 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2731

   To limit the liability of hospitals and emergency departments for 
noneconomic and punitive damages when providing uncompensated care, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2005

 Mr. Shadegg introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To limit the liability of hospitals and emergency departments for 
noneconomic and punitive damages when providing uncompensated care, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Care Liability Relief 
Act''.

SEC. 2. CONSTITUTIONAL AUTHORITY.

    The constitutional authority upon which this Act rests is the power 
of Congress to provide for the general welfare, to regulate commerce, 
and to make all laws which shall be necessary and proper, as enumerated 
in section 8 of article I of the Constitution of the United States.

SEC. 3. LIMITATIONS ON NONECONOMIC AND PUNITIVE DAMAGES WHEN PROVIDING 
              UNCOMPENSATED CARE.

    (a) In General.--Whenever items or services are furnished under 
section 1867 of the Social Security Act (42 U.S.C. 1395dd) to an 
uninsured individual for purposes of complying with such section, the 
liability of an emergency care provider for an injury arising out of 
the furnishing of such items or services shall be subject to the 
following limitations:
            (1) Noneconomic damages.--With respect to noneconomic 
        damages, the aggregate such liability for all such providers 
        may not exceed $250,000 or two times the amount of economic 
        damages, whichever is greater.
            (2) Punitive damages.--With respect to punitive damages, 
        the aggregate such liability for all such providers may not 
        exceed $250,000 or three times the amount of economic damages, 
        whichever is greater.
    (b) Definitions.--In this section:
            (1) Emergency care provider.--The term ``emergency care 
        provider'' means an emergency care entity or an officer, 
        governing board member, employee, or contractor of such an 
        entity.
            (2) Emergency care entity.--The term ``emergency care 
        entity'' means--
                    (A) a hospital or an emergency department to which 
                section 1867 of the Social Security Act (42 U.S.C. 
                1395dd) applies; and
                    (B) a physician or physician group that is employed 
                by, or under contract with, such hospital or department 
                to furnish items and services to individuals under such 
                section.
            (3) Uninsured individual.--The term ``uninsured 
        individual'' means an individual who, at the time the items or 
        services described in subsection (a) are furnished--
                    (A) does not have coverage under--
                            (i) a group health plan (as defined in 
                        section 2791(a)(1) of the Public Health Service 
                        Act (42 U.S.C. 300gg-91(a)(1)));
                            (ii) part A (42 U.S.C. 1395c et seq.) or B 
                        (42 U.S.C. 1395j et seq.) of title XVIII of the 
                        Social Security Act; or
                            (iii) a State plan under title XIX (42 
                        U.S.C. 1396 et seq.) of the Social Security 
                        Act; and
                    (B) does not have health insurance coverage (as 
                defined in section 2791(b)(1) of the Public Health 
                Service Act (42 U.S.C. 300gg-91(b)(1)) from any other 
                source.

SEC. 4. AWARDS OF ATTORNEY FEES AND COSTS IN AN ACTION INVOLVING 
              UNCOMPENSATED CARE.

    (a) In General.--In any action in any State or Federal court in 
which liability or damages described in section 3(a) is contested, the 
court (or the jury, if the matter is tried before a jury) may award to 
each prevailing party a reasonable attorney's fee and other reasonable 
costs relating to the prosecution of the action, subject to the other 
provisions of this section.
    (b) Persons Liable.--Liability for each award under subsection (a) 
shall be borne by one or more of the following persons, as allocated by 
the court or jury:
            (1) A nonprevailing party personally.
            (2) An attorney or law firm representing a nonprevailing 
        party, but only if such representation was on a contingent-fee 
        basis.
    (c) Factors Considered.--In exercising its discretion under 
subsections (a) and (b), the court or jury shall consider, and may 
conduct a separate evidentiary hearing on, the following factors:
            (1) The validity or reasonableness, or both, of the claim 
        of the nonprevailing party.
            (2) The reasonableness of the conduct of the litigation by 
        the attorney or law firm representing the nonprevailing party, 
        including consideration of any offer of settlement by the 
        prevailing party.
            (3) The reasonableness of the conduct of the litigation by 
        the attorney or law firm representing the prevailing party, 
        including consideration of any offer of settlement by the 
        nonprevailing party.
            (4) The financial resources of the nonprevailing party and 
        the extent to which the nonprevailing party would have been 
        unfairly discouraged from pursuing a reasonable and legitimate 
        claim for injuries by such an award.

SEC. 5. JURY IN AN ACTION INVOLVING UNCOMPENSATED CARE TO CONSIDER 
              EFFECT OF DAMAGES ON HEALTH CARE LIABILITY INSURANCE.

     In any action in any State or Federal court in which liability or 
damages described in section 3(a) is contested, the court shall 
instruct the jury that in considering the amount of damages (whether 
compensatory or punitive) to award against a defendant that has been 
found liable, the jury must consider the effect of the amount awarded 
on the price and availability of health care liability insurance.
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