Bill > H1966

This bill addresses the equitable allocation of recovery proceeds in subrogation claims, focusing on how insurance companies and injured parties share settlement or judgment funds. Specifically, the bill modifies existing laws to ensure fairer distribution of funds when an injured person receives compensation from a third party after already receiving medical benefits from their insurance. The key provisions require that attorney's fees and costs be divided proportionally between the health maintenance organization (HMO) or insurer and the injured person based on the amounts they receive. The bill limits insurers' liens or reimbursement claims to only the proportionate share of benefits provided relative to the total damages suffered. If a settlement or judgment is less than the total damages, the bill allows courts to reduce the insurer's lien after a hearing, taking into account the injured person's total cognizable damages. Additionally, either the insurance entity or the injured person can petition the court to determine the reasonableness of a settlement and fair allocation of funds. These changes aim to prevent insurers from recovering more than their fair share and protect injured parties' ability to be fully compensated for their damages.

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https://malegislature.gov/Bills/194/H1966