Provides relative to a claimant's duty to mitigate damages with respect to the actions for recovery
The proposed legislation will modify current practices by establishing a rebuttable presumption that if a claimant does not utilize their available health insurance to cover medical expenses from an injury, they are presumed to have failed to mitigate their damages. This presumption gives rise to significant implications in personal injury lawsuits as it could result in reduced damage awards if the claimant cannot demonstrate a valid reason for not using their health insurance.
House Bill 440 focuses on the procedures surrounding medical claims related to automobile liability insurance policies. It emphasizes the requirement for claimants with existing health coverage, such as private insurance, Medicare, or Medicaid, to first submit their medical claims to these providers before pursuing claims against automobile liability insurers. This change is designed to streamline the claims process and align the responsibilities of insured individuals in managing their medical reimbursements.
Sentiments regarding HB440 are mixed among stakeholders. Proponents argue that it will encourage efficiency in the claims process and reduce costs for insurers, which could mirror positively on consumer insurance premiums. Opponents, however, express concerns that it places an undue burden on claimants and may hinder access to necessary medical care, particularly for individuals who may already be strained financially. They fear it might restrict the rights of injured parties in pursuing adequate compensation for their medical costs.
One of the notable points of contention around HB440 is the balance it seeks to maintain between the rights of injured parties and the interests of insurance companies. Critics argue the bill could undermine the rights of individuals to seek full compensation for their injuries by shifting the burden to them to prove the necessity of using their health insurance. Furthermore, questions arise about the impact this bill might have on those with inadequate or complicated insurance coverage, potentially leading to inequitable outcomes in personal injury cases.