FIRST REGULAR SESSION
HOUSE BILL NO. 1113
95TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES LOW (Sponsor), OXFORD, CURLS, STILL, BURNETT, CALLOWAY, WEBB AND WEBBER (Co-sponsors).
1920L.01I D. ADAM CRUMBLISS, Chief Clerk
To repeal sections 408.020 and 408.040, RSMo, and to enact in lieu thereof two new sections relating to interest on medical debt.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 408.020 and 408.040, RSMo, are repealed and two new sections enacted in lieu thereof, to be known as sections 408.020 and 408.040, to read as follows:
408.020. Except for moneys for medical services and treatment after they become due and payable, creditors shall be allowed to receive interest at the rate of nine percent per annum, when no other rate is agreed upon, for all moneys after they become due and payable, on written contracts, and on accounts after they become due and demand of payment is made; for money recovered for the use of another, and retained without the owner's knowledge of the receipt, and for all other money due or to become due for the forbearance of payment whereof an express promise to pay interest has been made. For moneys for medical services and treatment after they become due and payable, creditors shall be allowed to receive interest at the rate of six percent per annum.
408.040. 1. In all nontort actions, interest shall be allowed on all money due upon any judgment or order of any court from the date judgment is entered by the trial court until satisfaction be made by payment, accord or sale of property; all such judgments and orders for money upon contracts bearing more than nine percent interest shall bear the same interest borne by such contracts, and all other judgments and orders for money shall bear nine percent per annum, or six percent per annum for such judgments and orders for medical services and treatment, until satisfaction made as aforesaid.
2. Notwithstanding the provisions of subsection 1 of this section, in tort actions, interest shall be allowed on all money due upon any judgment or order of any court from the date [of] judgment is entered by the trial court until full satisfaction. All such judgments and orders for money for medical services and treatment shall bear a per annum interest rate of six percent per annum. All other such judgments and orders for money shall bear a per annum interest rate equal to the intended Federal Funds Rate, as established by the Federal Reserve Board, plus five percent, until full satisfaction is made. The judgment shall state the applicable interest rate, which shall not vary once entered. In tort actions, if a claimant has made a demand for payment of a claim or an offer of settlement of a claim, to the party, parties or their representatives, and to such party's liability insurer if known to the claimant, and the amount of the judgment or order exceeds the demand for payment or offer of settlement, then prejudgment interest shall be awarded, calculated from a date ninety days after the demand or offer was received, as shown by the certified mail return receipt, or from the date the demand or offer was rejected without counter offer, whichever is earlier. In order to qualify as a demand or offer pursuant to this section, such demand must:
(1) Be in writing and sent by certified mail return receipt requested; and
(2) Be accompanied by an affidavit of the claimant describing the nature of the claim, the nature of any injuries claimed and a general computation of any category of damages sought by the claimant with supporting documentation, if any is reasonably available; and
(3) For wrongful death, personal injury, and bodily injury claims, be accompanied by a list of the names and addresses of medical providers who have provided treatment to the claimant or decedent for such injuries, copies of all reasonably available medical bills, a list of employers if the claimant is seeking damages for loss of wages or earning, and written authorizations sufficient to allow the party, its representatives, and liability insurer if known to the claimant to obtain records from all employers and medical care providers; and
(4) Reference this section and be left open for ninety days. Unless the parties agree in writing to a longer period of time, if the claimant fails to file a cause of action in circuit court prior to a date one hundred twenty days after the demand or offer was received, then the court shall not award prejudgment interest to the claimant. If the claimant is a minor or incompetent or deceased, the affidavit may be signed by any person who reasonably appears to be qualified to act as next friend or conservator or personal representative. If the claim is one for wrongful death, the affidavit may be signed by any person qualified pursuant to section 537.080, RSMo, to make claim for the death. Nothing contained herein shall limit the right of a claimant, in actions other than tort actions, to recover prejudgment interest as otherwise provided by law or contract.
3. In tort actions, a judgment for prejudgment interest awarded pursuant to this [subsection] section should bear interest at a per annum interest rate of six percent for medical services and treatment, and a per annum interest rate equal to the intended Federal Funds Rate, as established by the Federal Reserve Board, plus three percent. The judgment shall state the applicable interest rate, which shall not vary once entered.