(4) ALTERNATIVE DISPUTE RESOLUTION.—The
term ‘‘alternative dispute resolution’’ means a sys-
tem that provides for the resolution of claims in a
manner other than through a civil action brought in
a State or Federal court.
(5) CLAIMANT.—The term ‘‘claimant’’ means
any person who brings a medicare-related health
care lawsuit, including a person who asserts or
claims a right to legal or equitable contribution, in-
demnity or subrogation, arising out of a medicare-
related claim, and any person on whose behalf such
a claim is asserted or such an action is brought,
whether deceased, incompetent, or a minor.
(6) 
COMPENSATORY
DAMAGES.—The 
term
‘‘compensatory damages’’—
(A) means objectively verifiable monetary
losses incurred as a result of the provision of,
use of, or payment for (or failure to provide,
use, or pay for) medicare-related items or serv-
ices, such as past and future medical expenses,
loss of past and future earnings, cost of obtain-
ing domestic services, loss of employment, and
loss of business or employment opportunities,
damages for physical and emotional pain, suf-
fering, 
inconvenience, 
physical 
impairment,
mental anguish, disfigurement, loss of enjoy-
ment of life, loss of society and companionship,
loss of consortium (other than loss of domestic
service), hedonic damages, injury to reputation,
and all other nonpecuniary losses of any kind or
nature; and
(B) includes economic damages and non-
economic damages, as such terms are defined in
this section.
(7) ECONOMIC DAMAGES.—The term ‘‘economic
damages’’ means objectively verifiable monetary
losses, such as past and future medical expenses,
loss of past and future earnings, cost of obtaining
domestic services, loss of employment, and loss of
business or employment opportunities.
(8) NONECONOMIC DAMAGES.—The term ‘‘non-
economic damages’’ means damages for physical and
emotional pain, suffering, inconvenience, physical
impairment, mental anguish, disfigurement, loss of
enjoyment of life, loss of society and companionship,
loss of consortium (other than loss of domestic serv-
ice), hedonic damages, injury to reputation, and all
other nonpecuniary losses of any kind or nature.
(9) PUNITIVE DAMAGES.—The term ‘‘punitive
damages’’ means damages awarded, for the purpose
of punishment or deterrence, and not solely for com-
pensatory purposes. Punitive damages are neither
economic nor noneconomic damages.
(10) 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 claimant and the attorneys’ office
overhead costs or charges for legal services are not
deductible disbursements or costs for such purpose.
(11) HEALTH CARE ORGANIZATION.—The term
‘‘health care organization’’ means any person or en-
tity which is obligated to provide or pay for health
benefits under any health plan, including any person
or entity acting under a contract or arrangement
with a health care organization to provide or admin-
ister any health benefit.
(12) HEALTH
CARE
PROVIDER.—The term
‘‘health care provider’’ means any person or entity
required by State or Federal laws or regulations to
be licensed, registered, or certified to provide health
care services, and being either so licensed, reg-
istered, or certified, or exempted from such require-
ment by other statute or regulation.
(13) HEALTH CARE GOODS OR SERVICES.—The
term ‘‘health care goods or services’’ means any
goods or services provided by a health care organiza-
tion, provider, or by any individual working under
the supervision of a health care provider, that relates
to the diagnosis, prevention, or treatment of any
human disease or impairment, or the assessment of
the health of human beings.
(14) 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. 13. SENSE OF CONGRESS.
It is the sense of Congress that any savings generated
by this Act due to reduced Federal Medicare expenditures
associated with defensive medicine and higher medical
malpractice insurance rates should be placed in a Medi-
care Trust Fund to be used solely to meet Medicare ex-
penditures, including current benefits, enhanced or new
benefits, or the costs associated with the enactment of a
prescription drugs benefit.
SEC. 14. APPLICABILITY; EFFECTIVE DATE.
This Act shall apply to any medicare-related health
care lawsuit brought in a Federal or State court, or sub-
ject to alternative dispute resolution, that is initiated on
or after the date of the enactment of this Act, except that
any medicare-related 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 limita-
tions provisions in effect at the time the injury occurred.
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