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