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