I 
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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Emergency Care Li-
ability 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 
UNCOMPEN-
SATED 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 pur-
poses 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, which-
ever is greater. 
(2) PUNITIVE DAMAGES.—With respect to puni-
tive 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, em-
ployee, 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 hos-
pital or department to furnish items and serv-
ices to individuals under such section. 
(3) UNINSURED INDIVIDUAL.—The term ‘‘unin-
sured 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 cov-
erage (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 AC-
TION INVOLVING UNCOMPENSATED CARE. 
(a) IN GENERAL.—In any action in any State or Fed-
eral court in which liability or damages described in sec-
tion 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 re-
lating 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 non-
prevailing party, but only if such representation was 
on a contingent-fee basis. 
(c) FACTORS CONSIDERED.—In exercising its discre-
tion 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 inju-
ries 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 insur-
ance. 
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