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Texas paid or incurred rule, CPRC §41.0105: the statute text explained

The official text of the Texas statute limiting recovery of medical expenses to the amount actually paid or incurred, and how the Texas Supreme Court reads it.

4 min readPublished October 27, 2026Last updated October 27, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

Texas Civil Practice and Remedies Code §41.0105 says "recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant" (CPRC §41.0105). The Supreme Court of Texas has held that the section limits recovery to medical expenses "which have been or must be paid by or for the claimant", and that only evidence of recoverable medical expenses is admissible at trial (Haygood v. De Escabedo). An attorney can tell you how this rule applies to a specific situation.

This entry provides general informational guidance and is not legal advice.

Key facts (as of 2026-10-27)

  • Paid or incurred, not billed. Recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant (§41.0105).
  • Paid "by or on behalf of" the claimant. Amounts paid for the claimant, such as by an insurer, are within the statute's words.
  • Economic damages. Chapter 41 defines economic damages as compensatory damages intended to compensate a claimant for actual economic or pecuniary loss (§41.001(4)).
  • Broad reach. Chapter 41 applies to any action in which a claimant seeks damages relating to a cause of action, with the exceptions listed in §41.002(d) (§41.002).
  • The court's reading. Haygood v. De Escabedo, No. 09-0377, decided July 1, 2011 (search.txcourts.gov).
  • Unamended since 2003. The history line for §41.0105 lists only Acts 2003, 78th Leg., ch. 204, which added it.

What does §41.0105 say?

The official text of Tex. Civ. Prac. & Rem. Code §41.0105, as published by the Texas Legislature:

Sec. 41.0105. EVIDENCE RELATING TO AMOUNT OF ECONOMIC DAMAGES. In addition to any other limitation under law, recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant.

Source: Tex. Civ. Prac. & Rem. Code §41.0105, statutes.capitol.texas.gov. Text last checked October 27, 2026.

What does it mean in plain language?

  • A medical bill's listed charge and what is recoverable can differ. The statute limits recovery to what was actually paid, or incurred, by or on behalf of the injured person. When a provider adjusts its charges, as the providers in Haygood did, the amount paid or owed can be lower than the amount first billed. The court also said the jury should not be told that a health care provider adjusted its charges because of insurance.
  • The word "incurred" covers amounts still owed. The court in Haygood read the section to cover expenses that "have been or must be paid", so amounts that are owed but not yet paid are within it.
  • It adds to other limits. The section begins "In addition to any other limitation under law," so it works alongside other rules on damages.
  • It is about the amount, not who pays. The statute does not say who must pay a medical bill or in what order. The hospital lien entry covers a separate rule about a hospital's claim on what is recovered.

How has the Supreme Court of Texas read it?

In Haygood v. De Escabedo, the Supreme Court of Texas wrote:

Accordingly, we hold that section 41.0105 limits a claimant’s recovery of medical expenses to those which have been or must be paid by or for the claimant.

And on the evidence at trial:

Accordingly, we hold that only evidence of recoverable medical expenses is admissible at trial.

Source: Supreme Court of Texas, Haygood v. De Escabedo, No. 09-0377, opinion by Justice Hecht, delivered July 1, 2011. Read October 27, 2026. The court also said the collateral source rule continues to apply to such expenses, and that the jury should not be told that they will be covered in whole or in part by insurance. Two justices dissented.

Who does chapter 41 apply to?

The official text of §41.002(a):

(a) This chapter applies to any action in which a claimant seeks damages relating to a cause of action.

Source: Tex. Civ. Prac. & Rem. Code §41.002. Section 41.002(d) lists actions the chapter does not apply to, including an action under the Deceptive Trade Practices-Consumer Protection Act except as specifically provided in §17.50 of that Act, and an action under Chapter 21 of the Insurance Code. In chapter 41, "claimant" includes a party seeking recovery of damages and, where damages are sought for injury to or the death of another person, that other person as well (§41.001(1)).

When was this checked, and can it change?

The statute text above was last checked on October 27, 2026, against the official text published by the Texas Legislature. The Legislature can amend a statute in any session, and courts can refine how a rule is applied. The Legislature convenes in regular session on the second Tuesday in January of each odd-numbered year (Gov't Code §301.001), so the next regular session begins on January 12, 2027. This entry is scheduled to be rechecked against the official text by April 2027 and again after the 2027 regular session ends.

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Frequently asked questions

What does "paid or incurred" mean in Texas?
Tex. Civ. Prac. & Rem. Code §41.0105 says that, in addition to any other limitation under law, recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant.
How has the Supreme Court of Texas read §41.0105?
In Haygood v. De Escabedo (No. 09-0377, 2011), the court held that section 41.0105 limits a claimant's recovery of medical expenses to those which have been or must be paid by or for the claimant, and that only evidence of recoverable medical expenses is admissible at trial.
Does §41.0105 apply to every kind of lawsuit?
Chapter 41 applies to any action in which a claimant seeks damages relating to a cause of action, with the exceptions listed in §41.002(d), such as an action brought under the Deceptive Trade Practices-Consumer Protection Act except as that Act provides, or under Chapter 21 of the Insurance Code.
Can InjuryClaimGuide tell me what medical expenses I can recover?
No. InjuryClaimGuide is a legal advertising service. We do not apply the law to anyone's situation and do not evaluate any claim. An attorney can advise you about your specific situation.

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