Date: 1984-05-01
Speaker: SAM B. HALL (democrat)
Chamber: H

Mr. Speaker. I yield myself such time as I may consume. Mr. Speaker. the purpose of H.R. 4666 is to allow the recovery by the United States of the costs of hospital. medical. surgical. or dental care. and treatment provided by the United States in those jurisdictions where tort liabilty has been limited or substituted by a nofault system. The bill was introduced as recommended in an executive communication from the Department of Justice dated December 5. 1983. The Federal Medical Care Recovery Act. 42 U.S.C. 2651. et seq.. grants the Federal Government an independent right of action. sounding in tort. to recover the reasonable value of hospital. medical. surgical. or dental care and treatment when the Government Is required or authorized to provide such care and treatment to a person injured under circumstances giving rise to third party liability. Twentyone States. the District of Columbia and Puerto Rico have Implemented some type of nofault system and due in part to these changes. the number of successful claims under the Federal Medical Care Recovery Act is declining. In some eased recoveries have not been pursued because legal precedents have been set barring recovery under the act in nofault States. In Heuwle v. National Mutual Insurance. 628 F. 2d 833 (3rd Cir. 1980). the Court held that the Government could not recover its medical expenses because the right of recovery is based upon tort liability. and Pennsylvania had abolished tort liability in favor of a nofault system. The Court expressly stated that the resolution of the con flict was up to Congress. not the courts. While the Heusle precedent Is not universal. it has had a negative impact on an important source of revenue. Government recoveries under the Federal Medical Care Recovery Act totaled $25 million in fiscal year 1982. The Congressional Budget Office estimates that enactment of this bill would increase Federal receipts by several million dollars annually. The bill creates a new subsection (b) to 42 U.S.C. 2651 defining the basis of the Governments right of recovery to circumstances where a State had abolished or limited tort liability in favor of a nofault system. Under this bill. the Government is deemed to be a thirdparty beneficiary of any State compensation plan so as to receive any reimbursement benefit provided by that plan. and in those States that require the injured partys actually incurring the medical extiense. the inJured party is deemed to have incurred that expense for reimbursement purposes. Additionally. the bill establishes a new deposit and collection procedure for funds recouped under the Federal Medical Care Recovery Act. or any other right the United States has for the recoupment of medical care costs. H.R. 4666 authorizes the deposit of the recouped funds to the appropriation from which the care or treatment was charged. This differs from the current requirement of depositing recouped funds to general Treasury revenues. and is intended to encourage recovery actions under the Federal Medical Care Recovery Act. The committee has concluded that the recommendations of the Department of Justice will strengthen the United States ability to recover medical care and treatment costs in those jurisdictions where tort liability has been limited or abolished in favor of a nofault system. Accordingly. it is recormmended that the bill be considered favorably.