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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2390 By: Kannady
AS INTRODUCED
An Act relating to civil procedure; providing the
method for determining the amount to be recovered
against a party that received payment; providing the
method for determining the amount to be recovered
against a third-party payer; providing the method for
determining the amount to be recovered when a payment
is made by a payor that is less than the judgment or
settlement amount; providing the method for
determining the amount to be recovered when a payor's
payment equals or exceeds the judgment or settlement
amount; providing the method for determining the
amount to be recovered when a payor incurs
procurement costs because of oppositio n to its
recovery; providing a recovery worksheet; providing
the method to determine the amount to be recovered
from a beneficiary; providing the method to determine
the amount to be refunded; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 994.3 of Title 12, unless there
is created a duplication in numbering, reads as follows:
A. Recovery against the party that received payment.
1. General rule. Any payor of money benefits with recovery or
reimbursement rights by contract or statute reduces its recovery to
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take account of the cost of procuring the judgment or settlement
from a third party, as provided in this section, if:
a. procurement costs are incurred because the claim i s
disputed, and
b. those costs are borne by the party against which the
payor seeks to recover.
2. Special rule. If a payor must file suit because the party
that received payment opposes the payor's recovery, the recovery
amount is as set forth in subsection E o f this section.
B. Recovery against the third -party payer. If the payor seeks
recovery from the third -party payer, the recovery amount will be no
greater than the amount determined under subsection C, D or E of
this section.
C. Payments made by a payor that are less than the judgment or
settlement amount. If a payor's payments are less than the judgment
or settlement amount, the recovery is computed as follows:
1. Determine the ratio of the procurement costs to the total
judgment or settlement payment;
2. Apply the ratio to the person or entity's payment. The
product is the payor's share of procurement costs; and
3. Subtract the payor's share of procurement cos ts from his or
her claimed payments. The remainder is the payor's recovery amount.
D. A payor's payments that equals or exceeds the judgment or
settlement amount. If payor's payments equal or exceed the judgment
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or settlement amount, the recovery amount is the total judgment or
settlement payment minus the total procurement costs.
E. The payor incurs procurement costs because of opposition to
its recovery. If the payor must bring suit against the party that
received payment becau se that party opposes t he recovery, the
recovery amount is the lower of the following:
1. The person or entity 's payment; or
2. The total judgment or settlement amount, minus the party 's
total procurement cost.
F. Recovery worksheet. The amount to be recov ered from the
beneficiary is the amount payor paid, less a proportionate share of
the costs of procuring the j udgment or settlement. The amount to be
refunded is determined as follows:
If the payor's payment is less than the amount of judgment or
settlement:
1. Determine the ratio of the payments to the total amount of
the judgment or settlement ;
2. Apply this ratio to the costs of procuring the judgment or
settlement, including attorney fees ; and
3. Subtract the payor's share of procurement costs from their
payments. The remainder is the amount of reimbursement to be
refunded to the payor seeking recovery of payments.
Step 1:
$_________________ / $_________________ = __________________
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Payor's Payment Judgment/Settlement Ratio
Carry out 6 digits
Step 2:
__________________ X $_________________ = __________________
Ratio from Step 1 Procurement Costs Payor's Share of
Carry out 6 digits Procurement Cost
Step 3:
$_________________ - $_________________ = __________________
Payor's Payment Payor's Share of Refund to Payor
Procurement Costs
G. If the payor's payments equal or exceed the amount of the
judgment or settlement, subtract the total procurement costs from
the judgment or settlement. The remainder is the amou nt of
reimbursement to be refunded to the payor. The beneficiary will not
be required to refund more than the liability insurance payment
minus the procurement costs.
$_________________ - $_________________ = $_________________
Judgment/Settlement Procurement Costs Refund
SECTION 2. This act shall become effective November 1, 2023.
59-1-6111 JL 01/18/23