| 1 | 1 | | HOUSE . . . . . . . . No. 4362 |
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| 2 | 2 | | The Commonwealth of Massachusetts |
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| 3 | 3 | | ________________________________________ |
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| 4 | 4 | | HOUSE OF REPRESENTATIVES, February 12, 2024. |
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| 5 | 5 | | The committee on The Judiciary to whom was referred the petition |
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| 6 | 6 | | (accompanied by bill, House, No. 1750) of Jeffrey N. Roy, Margaret R. |
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| 7 | 7 | | Scarsdale and John Barrett, III relative to equitable allocation of recovery |
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| 8 | 8 | | proceeds for certain subrogation claims, reports recommending that the |
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| 9 | 9 | | accompanying bill (House, No. 4362) ought to pass. |
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| 10 | 10 | | For the committee, |
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| 11 | 11 | | MICHAEL S. DAY. 1 of 3 |
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| 12 | 12 | | FILED ON: 2/5/2024 |
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| 13 | 13 | | HOUSE . . . . . . . . . . . . . . . No. 4362 |
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| 14 | 14 | | The Commonwealth of Massachusetts |
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| 15 | 15 | | _______________ |
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| 16 | 16 | | In the One Hundred and Ninety-Third General Court |
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| 17 | 17 | | (2023-2024) |
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| 18 | 18 | | _______________ |
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| 19 | 19 | | An Act concerning equitable allocation of recovery proceeds for subrogation claims. |
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| 20 | 20 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 21 | 21 | | of the same, as follows: |
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| 22 | 22 | | 1 SECTION 1. Section 70A of chapter 111 of the General Laws, as appearing in the 2022 |
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| 23 | 23 | | 2Official Edition, is hereby amended by inserting after the first sentence the following sentences:- |
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| 24 | 24 | | 3 Any attorney’s fees and costs incurred in enforcing liability and obtaining such judgment, |
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| 25 | 25 | | 4settlement or compromise shall be divided between the health maintenance organization, |
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| 26 | 26 | | 5hospital, medical or dental service corporation and the injured person in proportion to the amount |
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| 27 | 27 | | 6received by them from any such judgment, settlement or compromise. If the settlement or |
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| 28 | 28 | | 7judgment, or funds available to satisfy the judgment, are less than the amount of the injured |
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| 29 | 29 | | 8person’s total damages, the court may, after a hearing and evaluation of the injured party’s total |
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| 30 | 30 | | 9damages, reduce the amount of the lien. |
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| 31 | 31 | | 10 SECTION 2. Said chapter 111, as so appearing, is hereby further amended by inserting |
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| 32 | 32 | | 11after section 70D the following section:- |
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| 33 | 33 | | 12 Section 70D ½. Notwithstanding the provisions of sections 70A to 70D, inclusive, and |
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| 34 | 34 | | 13any contractual term to the contrary, no health maintenance organization or group or individual 2 of 3 |
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| 35 | 35 | | 14medical or disability insurer that has provided benefits for covered services to an injured person |
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| 36 | 36 | | 15shall have a lien, right of reimbursement, subrogation claim or claim of recoupment upon any |
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| 37 | 37 | | 16recovery or sum had, collected or to be collected, whether by judgment, settlement or |
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| 38 | 38 | | 17compromise, from another person as damages on account of such injuries for more than the |
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| 39 | 39 | | 18proportionate share of said recovery or sum subject to its lien, right of reimbursement, |
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| 40 | 40 | | 19subrogation claim or claim of recoupment which the amount of benefits so provided for covered |
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| 41 | 41 | | 20services bears to the total value of the injured person’s damages. |
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| 42 | 42 | | 21 The entity which provided benefits or the injured person may petition the court in which |
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| 43 | 43 | | 22any case seeking damages on account of such injuries is pending, or in a court in which such |
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| 44 | 44 | | 23case could be properly filed had settlement not been attained before commencement of suit, for a |
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| 45 | 45 | | 24determination of the reasonableness of the settlement and the fair allocation of amounts payable |
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| 46 | 46 | | 25thereunder, including any attorneys’ fees or costs incurred obtaining any recovery or sum from a |
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| 47 | 47 | | 26third party as damages on account of such injuries. A hearing on such petition shall adhere to the |
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| 48 | 48 | | 27same procedural requirement as provided in section 15 of chapter 152. |
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| 49 | 49 | | 28 SECTION 3. Chapter 231 of the General Laws, as so appearing, is hereby amended by |
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| 50 | 50 | | 29inserting after section 140C½ the following section:- |
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| 51 | 51 | | 30 Section 140D. In any action in which an injured person enters into a settlement with or |
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| 52 | 52 | | 31obtains a judgment from a third party, and benefits for such person’s injuries have been paid |
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| 53 | 53 | | 32under chapter 152, and the injured person and the insurer paying said benefits do not agree to the |
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| 54 | 54 | | 33amount each is entitled to recover out of such settlement or judgment, the court or authority |
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| 55 | 55 | | 34authorized to approve settlements under section 15 of chapter 152 shall determine a just and |
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| 56 | 56 | | 35reasonable apportionment thereof in accordance with this section; provided, however, if the 3 of 3 |
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| 57 | 57 | | 36settlement or judgment, or funds available to satisfy the judgment, are less than the amount of the |
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| 58 | 58 | | 37injured person’s total damages, the court or other authority authorized to approve settlements |
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| 59 | 59 | | 38under section 15 of chapter 152 may after hearing and evaluation of the injured party’s total |
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| 60 | 60 | | 39damages reduce the amount of the lien. Except in the case of a final judgment, the injured party |
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| 61 | 61 | | 40may withdraw consent to settlement if dissatisfied with the apportionment by the court. |
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