An Act Concerning A Right Of Recovery Against Third Parties For Medical Expenses Paid By State-provided Group Hospitalization And Medical And Surgical Insurance Plans For Covered Individuals.
Impact
The proposed legislation amends Section 5-259 of the general statutes to specify the rights of recovery for the Comptroller, enabling it to act as a subrogee in legal situations. This would allow the state to reclaim medical expenses from third parties, thus reducing the financial burden on state-provided insurance systems. Furthermore, the bill clarifies that payments made by third parties are not treated as 'collateral sources,' meaning that they cannot be used to offset the claims made by the state, which could facilitate more efficient recovery of costs.
Summary
SB01105, known as the Act Concerning a Right of Recovery Against Third Parties for Medical Expenses Paid by State-provided Group Hospitalization and Medical and Surgical Insurance Plans for Covered Individuals, aims to enhance the state's ability to recover medical expenses on behalf of individuals covered by state insurance plans. This bill allows the Comptroller to request the Attorney General to pursue legal action against third parties liable for paying medical expenses incurred by these individuals. The intention is to strengthen financial recovery processes for the state in situations where it has incurred costs due to injuries caused by others.
Contention
Despite the clear financial benefits outlined by proponents, there may be concerns regarding the potential implications for individuals seeking to recover medical costs themselves. The amendment to define collateral sources in this context could lead to complications in personal injury claims where individuals receive settlements. Moreover, critics may argue that pursuing third parties could result in lengthy legal battles, introducing delays for individuals who require timely reimbursement for medical costs. The discussion surrounding the impacts of this legislation can evoke a spectrum of opinions on its fairness and effectiveness in practice.
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