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Senate Bill #66002 has passed both the Senate and Assembly and is awaiting signature by Governor Paterson.

This bill makes important changes in the General Obligations Law and eliminates any right of subrogation by health insurance providers except for those payments as to which there is a statutory right of reimbursement.

We advise our members not to enter into any stipulations of settlement in any cases in which a health insurance carrier is, or may, claim a right of reimbursement for medical expenses paid, either by reason of a right of equitable subrogation or contractual subrogation, but does not have a statutory right to reimbursement (e.g. ERISA, Medicare, Medicaid, no-fault, workers compensation) until AFTER the Governor has signed this legislation. The Governor is expected to sign this legislation on or before November 21, 2009.

Specifically, the legislation provides, in pertinent part (Part F, Section 8):

Except where there is a statutory right of reimbursement, no party entering into such a settlement shall be subject to a subrogation claim or claim for reimbursement by a benefit provider and a benefit provider shall have no lien or right of subrogation or reimbursement against any such settling party, with respect to those losses or expenses that have been or are obligated to be paid or reimbursed by said benefit provider. Click here to see more information. We will advise when the bill gets signed. In the meantime you may visit us here if you have any questions.

Neal Andrew Goldstein

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