pensatory purposes, against a health care provider,
health care organization, or a manufacturer, dis-
tributor, or supplier of a medical product. Punitive
damages are neither economic nor noneconomic
damages.
(17) RECOVERY.—The term ‘‘recovery’’ means
the net sum recovered after deducting any disburse-
ments or costs incurred in connection with prosecu-
tion or settlement of the claim, including all costs
paid or advanced by any person. Costs of health care
incurred by the plaintiff and the attorneys’ office
overhead costs or charges for legal services are not
deductible disbursements or costs for such purpose.
(18) STATE.—The term ‘‘State’’ means each of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Northern Mariana Is-
lands, the Trust Territory of the Pacific Islands, and
any other territory or possession of the United
States, or any political subdivision thereof.
SEC. 10. EFFECT ON OTHER LAWS.
(a) VACCINE INJURY.—
(1) To the extent that title XXI of the Public
Health Service Act establishes a Federal rule of law
applicable to a civil action brought for a vaccine-re-
lated injury or death—
(A) this Act does not affect the application
of the rule of law to such an action; and
(B) any rule of law prescribed by this Act
in conflict with a rule of law of such title XXI
shall not apply to such action.
(2) If there is an aspect of a civil action
brought for a vaccine-related injury or death to
which a Federal rule of law under title XXI of the
Public Health Service Act does not apply, then this
Act or otherwise applicable law (as determined
under this Act) will apply to such aspect of such ac-
tion.
(b) OTHER FEDERAL LAW.—Except as provided in
this section, nothing in this Act shall be deemed to affect
any defense available to a defendant in a health care law-
suit or action under any other provision of Federal law.
SEC. 11. STATE FLEXIBILITY AND PROTECTION OF STATES’
RIGHTS.
(a) HEALTH CARE LAWSUITS.—The provisions gov-
erning health care lawsuits set forth in this Act preempt,
subject to subsections (b) and (c), State law to the extent
that State law prevents the application of any provisions
of law established by or under this Act. The provisions
governing health care lawsuits set forth in this Act super-
sede chapter 171 of title 28, United States Code, to the
extent that such chapter—
(1) provides for a greater amount of damages
or contingent fees, a longer period in which a health
care lawsuit may be commenced, or a reduced appli-
cability or scope of periodic payment of future dam-
ages, than provided in this Act; or
(2) prohibits the introduction of evidence re-
garding collateral source benefits, or mandates or
permits subrogation or a lien on collateral source
benefits.
(b) PROTECTION OF STATES’ RIGHTS.—Any issue
that is not governed by any provision of law established
by or under this Act (including State standards of neg-
ligence) shall be governed by otherwise applicable State
or Federal law. This Act does not preempt or supersede
any law that imposes greater protections (such as a short-
er statute of limitations) for health care providers and
health care organizations from liability, loss, or damages
than those provided by this Act.
(c) STATE FLEXIBILITY.—No provision of this Act
shall be construed to preempt—
(1) any State statutory limit (whether enacted
before, on, or after the date of the enactment of this
Act) on the amount of compensatory or punitive
damages (or the total amount of damages) that may
be awarded in a health care lawsuit, whether or not
such State limit permits the recovery of a specific
dollar amount of damages that is greater or lesser
than is provided for under this Act, notwithstanding
section 4(a); or
(2) any defense available to a party in a health
care lawsuit under any other provision of State or
Federal law.
SEC. 12. APPLICABILITY; EFFECTIVE DATE.
This Act shall apply to any health care lawsuit
brought in a Federal or State court, or subject to an alter-
native dispute resolution system, that is initiated on or
after the date of the enactment of this Act, except that
any health care lawsuit arising from an injury occurring
prior to the date of the enactment of this Act shall be
governed by the applicable statute of limitations provisions
in effect at the time the injury occurred.
SEC. 13. SENSE OF CONGRESS.
It is the sense of Congress that a health insurer
should be liable for damages for harm caused when it
makes a decision as to what care is medically necessary
and appropriate.
Passed the House of Representatives September 26,
2002.
Attest:
Clerk.
107TH CONGRESS
2D SESSION
H. R. 4600
AN ACT
To improve patient access to health care services
and provide improved medical care by reducing
the excessive burden the liability system places
on the health care delivery system.