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2 | 2 | | HOUSE DOCKET, NO. 1771 FILED ON: 1/18/2023 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 1750 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Jeffrey N. Roy |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act concerning equitable allocation of recovery proceeds for subrogation claims. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Jeffrey N. Roy10th Norfolk1/13/2023Margaret R. Scarsdale1st Middlesex2/6/2023John Barrett, III1st Berkshire2/6/2023 1 of 3 |
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16 | 16 | | HOUSE DOCKET, NO. 1771 FILED ON: 1/18/2023 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 1750 |
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18 | 18 | | By Representative Roy of Franklin, a petition (accompanied by bill, House, No. 1750) of Jeffrey |
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19 | 19 | | N. Roy, Margaret R. Scarsdale and John Barrett, III relative to equitable allocation of recovery |
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20 | 20 | | proceeds for certain subrogation claims. The Judiciary. |
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21 | 21 | | The Commonwealth of Massachusetts |
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22 | 22 | | _______________ |
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23 | 23 | | In the One Hundred and Ninety-Third General Court |
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24 | 24 | | (2023-2024) |
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25 | 25 | | _______________ |
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26 | 26 | | An Act concerning equitable allocation of recovery proceeds for subrogation claims. |
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27 | 27 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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28 | 28 | | of the same, as follows: |
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29 | 29 | | 1 SECTION 1. Section 70A of chapter 111 of the General Laws, as appearing in the 2018 |
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30 | 30 | | 2Official Edition, is hereby amended by adding the following sentence:- |
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31 | 31 | | 3 The expense of any attorney’s fees and costs incurred in enforcing the liability of the |
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32 | 32 | | 4tortfeasor and in obtaining such judgment, compromise or settlement shall be divided between |
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33 | 33 | | 5the health maintenance organization, or hospital, medical or dental service corporation and the |
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34 | 34 | | 6injured person in proportion to the amounts received by them from any such judgment, |
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35 | 35 | | 7settlement or compromise. If the settlement, judgment or funds available to satisfy the judgment |
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36 | 36 | | 8are less than the amount of plaintiff’s total damages, the court may reduce after a hearing the |
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37 | 37 | | 9amount of said insurer’s lien in the action, after evaluation of the plaintiff’s total cognizable |
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38 | 38 | | 10damages at law. |
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39 | 39 | | 11 SECTION 2. Chapter 111 of the General Laws, as so appearing, is hereby amended by |
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40 | 40 | | 12inserting after section 70D the following section:- 2 of 3 |
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41 | 41 | | 13 Section 70D ½. Notwithstanding the provisions of sections 70A to 70D, inclusive, and |
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42 | 42 | | 14any contractual term to the contrary, no health maintenance organization or group or individual |
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43 | 43 | | 15medical insurer or disability insurer which has provided benefits for covered services to a person |
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44 | 44 | | 16insured in an accident shall have a lien or right of reimbursement or subrogation claim or claims |
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45 | 45 | | 17of recoupment no matter how designated upon any recovery or sum had or collected or to be |
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46 | 46 | | 18collected, whether by judgment or by settlement or compromise from another person as damages |
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47 | 47 | | 19on account of such injuries, for more than the proportionate share of said recovery or sum subject |
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48 | 48 | | 20to its lien, right or reimbursement, subrogation claim or claims of recoupment which the amount |
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49 | 49 | | 21of benefits so provided for covered services bears to the complete value of the injured person’s |
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50 | 50 | | 22tort damages. |
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51 | 51 | | 23 Either the entity which provided benefits or the injured person may petition the court in |
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52 | 52 | | 24which the accident case is pending, or in a court in which such case could be properly filed had |
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53 | 53 | | 25settlement not been attained before commencement of suit, for a determination of the |
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54 | 54 | | 26reasonableness of the settlement and the fair allocation of amounts payable thereunder. A hearing |
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55 | 55 | | 27on such petition shall adhere to the same procedural requirement as provided in section 15 of |
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56 | 56 | | 28chapter 152. |
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57 | 57 | | 29 SECTION 3. Chapter 231 of the General Laws, as appearing in the 2018 Official Edition, |
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58 | 58 | | 30is hereby amended by inserting after section 72 the following section:- |
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59 | 59 | | 31 Section 72A. In any action in which an injured person enters into a settlement with, or |
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60 | 60 | | 32obtains a judgment upon trial from a third party and benefits for such person’s injuries have been |
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61 | 61 | | 33paid under chapter 152, and the injured person and the insurer paying said benefits do not agree |
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62 | 62 | | 34to the amount each is entitled to recover out of such settlement or judgment, there shall be a just 3 of 3 |
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63 | 63 | | 35and reasonable apportionment thereof in accordance with this section; provided, however if the |
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64 | 64 | | 36settlement, judgment or funds available to satisfy the judgment are less than the amount of |
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65 | 65 | | 37plaintiff’s total damages, the court or other authority authorized to approve settlements under |
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66 | 66 | | 38section 15 of chapter 152 may reduce after a hearing the amount of said insurer’s lien in the |
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67 | 67 | | 39action, after evaluation of the plaintiff’s total cognizable damages at law. Except in the case of a |
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68 | 68 | | 40final judgment, where the plaintiff is dissatisfied with the apportionment by the court, he may |
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69 | 69 | | 41withdraw his consent to the settlement. |
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