New Law titled, “Rights of Subrogee” attempts to reduce medical pay liens and could interfere with your company and insured’s insurance policy language. While some companies are aligning with the law and changing recovery rights, others believe the opposite.
Under the Ohio Budget Bill, Governor John Kasich passed Ohio Revised Code 2323.44 that took effect on September 29, 2015. This new law, titled Rights of Subrogee, mainly reduces your medical pay lien while directly interfering with your company and insured’s insurance policy language. This article will focus its discussion on your decision to compromise reduction of your medical pay lien. First, read an excerpt from Revised Code 2323.44(B)(1):
“If less than full value of the tort action is recovered for comparative negligence, diminished due to a party’s liability under section 2307.22 to 2307.28 of the Revised Code, or by reason of the collectability of the full value of the claim for injury, death, or loss to person resulting from limited liability insurance or any other cause, the subrogee’s claim shall be diminished in the same proportion as the insured party’s interest is diminished.”
There is no legislative history to thumb through to review, let alone determine, the intent of this new law because it was never put into the 2015 Ohio Budget Bill.
There is no legislative history to thumb through to review, let alone determine, the intent of this new law because it was never put into the 2015 Ohio Budget Bill. No notes. No mention. It just happened. So, does the law apply to the date of the incident that gave rise to the medical treatment? Or, is it the date of the medical treatment? [Or], is it the date the litigation is filed? Am I hot or cold here Governor Kasich? There are two matters for consideration: (i) the issue of what medical bills this new law applies to will cause contention as subrogation attorney’s work through this change; and (ii) your company should argue that the new statute only applies to medical treatment, which, occurs after the effective date or for lawsuits filed after the effective date.
Has the insured’s claim been reduced by the insured’s comparative negligence or a collectability issue?
The next matter to consider when deciding to compromise a med pay lien is, “has the insured’s claim been reduced by the insured’s comparative negligence or a collectability issue?” If the answer is yes, and the medical bill was incurred after September 28, 2015, then a reduction of the medical pay lien should be considered. When you’re considering compromising a med pay lien, ask yourself “has the insured’s claim been reduced by the insured’s comparative negligence or a collectability issue”? If the answer is yes, and the medical bill was incurred after September 28, 2015, then a reduction of the med pay lien should be considered.
The Rights of Subrogee law attempts to provide for a [proportioned] sharing between your insured and your company.
In conclusion, the Rights of Subrogee law attempts to provide for a [proportioned] sharing between your insured and your company. In other words, the law is attempting to balance the obligated amount owed resulting from the medical bills. Some personal injury lawyers are using the phrase “or any other cause,” from the statute to request your company reduce its med pay lien by the attorney fees the insured is paying. While there are attempts to misuse this entitlement for a proportional reduction of legal fees, we do not agree with this assessment; however, we will let you know of any Court rulings. As Ohio subrogation attorneys are actively monitoring this statute and sharing developments, we will keep you updated on this new statute. In the meantime, don’t hesitate to contact one of our subrogation attorneys regarding this matter.