Iowa Legislature Addressed PEXA rule

Posted on: June 22nd, 2020

The Iowa legislature has addressed the “PEXA” rule established in Pexa v. Auto Owners Insurance Co., 686 N.W.2d 150 (Iowa 2004). The Pexa case provided that a jury, in personal injury cases, may consider both the charged amount and the actual amount of past medical bills paid when determining how much to award for past medical expenses.

On February 25, 2020, Senate File 2338, as passed by the Senate, would establish a cap on recovery in medical malpractice cases to the amount of $750,000, limit recoverable damages for medical expenses, and limit evidence admissible to prove past medical expenses.  As it moved through subcommittee, the House amended the bill and struck the caps on recovery. The bill contains two provisions limiting evidence to amounts actually paid for past medical expenses, and limiting damages for past medical expenses in personal injury claims to the amount actually paid.  On June 5, 2020, the House passed the amended bill.  After additional amendments by the Senate, the bill passed on June 10, 2020.  On June 18, 2020, Governor Reynolds signed Senate File 2338 into law.

Read more news articles »