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3 | 3 | | Req. No. 6111 Page 1 1 |
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28 | 28 | | STATE OF OKLAHOMA |
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29 | 29 | | |
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30 | 30 | | 1st Session of the 59th Legislature (2023) |
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31 | 31 | | |
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32 | 32 | | HOUSE BILL 2390 By: Kannady |
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33 | 33 | | |
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34 | 34 | | |
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36 | 36 | | |
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37 | 37 | | |
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38 | 38 | | AS INTRODUCED |
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39 | 39 | | |
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40 | 40 | | An Act relating to civil procedure; providing the |
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41 | 41 | | method for determining the amount to be recovered |
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42 | 42 | | against a party that received payment; providing the |
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43 | 43 | | method for determining the amount to be recovered |
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44 | 44 | | against a third-party payer; providing the method for |
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45 | 45 | | determining the amount to be recovered when a payment |
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46 | 46 | | is made by a payor that is less than the judgment or |
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47 | 47 | | settlement amount; providing the method for |
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48 | 48 | | determining the amount to be recovered when a payor's |
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49 | 49 | | payment equals or exceeds the judgment or settlement |
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50 | 50 | | amount; providing the method for determining the |
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51 | 51 | | amount to be recovered when a payor incurs |
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52 | 52 | | procurement costs because of oppositio n to its |
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53 | 53 | | recovery; providing a recovery worksheet; providing |
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54 | 54 | | the method to determine the amount to be recovered |
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55 | 55 | | from a beneficiary; providing the method to determine |
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56 | 56 | | the amount to be refunded; and providing an effective |
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57 | 57 | | date. |
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58 | 58 | | |
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59 | 59 | | |
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60 | 60 | | |
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61 | 61 | | |
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62 | 62 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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63 | 63 | | SECTION 1. NEW LAW A new section of law to be codified |
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64 | 64 | | in the Oklahoma Statutes as Section 994.3 of Title 12, unless there |
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65 | 65 | | is created a duplication in numbering, reads as follows: |
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66 | 66 | | A. Recovery against the party that received payment. |
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67 | 67 | | 1. General rule. Any payor of money benefits with recovery or |
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68 | 68 | | reimbursement rights by contract or statute reduces its recovery to |
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69 | 69 | | |
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94 | 94 | | |
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95 | 95 | | take account of the cost of procuring the judgment or settlement |
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96 | 96 | | from a third party, as provided in this section, if: |
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97 | 97 | | a. procurement costs are incurred because the claim i s |
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98 | 98 | | disputed, and |
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99 | 99 | | b. those costs are borne by the party against which the |
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100 | 100 | | payor seeks to recover. |
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101 | 101 | | 2. Special rule. If a payor must file suit because the party |
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102 | 102 | | that received payment opposes the payor's recovery, the recovery |
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103 | 103 | | amount is as set forth in subsection E o f this section. |
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104 | 104 | | B. Recovery against the third -party payer. If the payor seeks |
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105 | 105 | | recovery from the third -party payer, the recovery amount will be no |
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106 | 106 | | greater than the amount determined under subsection C, D or E of |
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107 | 107 | | this section. |
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108 | 108 | | C. Payments made by a payor that are less than the judgment or |
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109 | 109 | | settlement amount. If a payor's payments are less than the judgment |
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110 | 110 | | or settlement amount, the recovery is computed as follows: |
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111 | 111 | | 1. Determine the ratio of the procurement costs to the total |
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112 | 112 | | judgment or settlement payment; |
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113 | 113 | | 2. Apply the ratio to the person or entity's payment. The |
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114 | 114 | | product is the payor's share of procurement costs; and |
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115 | 115 | | 3. Subtract the payor's share of procurement cos ts from his or |
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116 | 116 | | her claimed payments. The remainder is the payor's recovery amount. |
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117 | 117 | | D. A payor's payments that equals or exceeds the judgment or |
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118 | 118 | | settlement amount. If payor's payments equal or exceed the judgment |
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145 | 145 | | or settlement amount, the recovery amount is the total judgment or |
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146 | 146 | | settlement payment minus the total procurement costs. |
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147 | 147 | | E. The payor incurs procurement costs because of opposition to |
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148 | 148 | | its recovery. If the payor must bring suit against the party that |
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149 | 149 | | received payment becau se that party opposes t he recovery, the |
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150 | 150 | | recovery amount is the lower of the following: |
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151 | 151 | | 1. The person or entity 's payment; or |
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152 | 152 | | 2. The total judgment or settlement amount, minus the party 's |
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153 | 153 | | total procurement cost. |
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154 | 154 | | F. Recovery worksheet. The amount to be recov ered from the |
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155 | 155 | | beneficiary is the amount payor paid, less a proportionate share of |
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156 | 156 | | the costs of procuring the j udgment or settlement. The amount to be |
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157 | 157 | | refunded is determined as follows: |
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158 | 158 | | If the payor's payment is less than the amount of judgment or |
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159 | 159 | | settlement: |
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160 | 160 | | 1. Determine the ratio of the payments to the total amount of |
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161 | 161 | | the judgment or settlement ; |
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162 | 162 | | 2. Apply this ratio to the costs of procuring the judgment or |
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163 | 163 | | settlement, including attorney fees ; and |
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164 | 164 | | 3. Subtract the payor's share of procurement costs from their |
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165 | 165 | | payments. The remainder is the amount of reimbursement to be |
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166 | 166 | | refunded to the payor seeking recovery of payments. |
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167 | 167 | | Step 1: |
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168 | 168 | | $_________________ / $_________________ = __________________ |
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169 | 169 | | |
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195 | 195 | | Payor's Payment Judgment/Settlement Ratio |
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196 | 196 | | Carry out 6 digits |
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197 | 197 | | Step 2: |
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198 | 198 | | __________________ X $_________________ = __________________ |
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199 | 199 | | Ratio from Step 1 Procurement Costs Payor's Share of |
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200 | 200 | | Carry out 6 digits Procurement Cost |
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201 | 201 | | Step 3: |
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202 | 202 | | $_________________ - $_________________ = __________________ |
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203 | 203 | | Payor's Payment Payor's Share of Refund to Payor |
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204 | 204 | | Procurement Costs |
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205 | 205 | | G. If the payor's payments equal or exceed the amount of the |
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206 | 206 | | judgment or settlement, subtract the total procurement costs from |
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207 | 207 | | the judgment or settlement. The remainder is the amou nt of |
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208 | 208 | | reimbursement to be refunded to the payor. The beneficiary will not |
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209 | 209 | | be required to refund more than the liability insurance payment |
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210 | 210 | | minus the procurement costs. |
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211 | 211 | | $_________________ - $_________________ = $_________________ |
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212 | 212 | | Judgment/Settlement Procurement Costs Refund |
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213 | 213 | | SECTION 2. This act shall become effective November 1, 2023. |
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214 | 214 | | |
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215 | 215 | | 59-1-6111 JL 01/18/23 |
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