This article examines Chapter 41, Section 41.0105 of the Texas Civil Practice and Remedies Code, which limits the recovery of medical expenses to those that are “paid or incurred.” The authors trace the legislative history of the statute and explain how it was intended to curb inflated damage awards based on billed, rather than actually paid, medical charges. The article surveys key Texas Supreme Court and intermediate appellate decisions interpreting Section 41.0105, focusing on evidentiary requirements and the exclusion of write-offs and adjustments. It also analyzes ongoing disputes regarding what constitutes “incurred” expenses and the role of insurance, liens, and letters of protection. The authors conclude by assessing the statute’s practical impact on personal injury litigation and offering guidance for litigants navigating damages proof under the paid-or-incurred framework.
Cooper et al. (Tue,) studied this question.