The proposed bill limits Health Subrogation & Creates Extra Contractual Liability on P&C Insurers Louisiana is considering a bill to prevent auto, property and workers compensation insurers from paying health plan or health insurers their subrogation liens. The bill requires such P&C carriers to first obtain the written consent of the health plan or insurer’s “insured” or their “legal representative.” The bill provides that any suit to enforce this obligation include payment of the attorney fees for bringing the case. Practically speaking, the bill will make health subrogation nearly impossible. Health carriers’ rights to reimbursement will be clearly dependent on their insureds’ consent. The bill gives no instructions, explanations, information or bases for why and when an insured may withhold consent. Under the present wording, an insured could withhold their consent for a reasonable perceived basis or merely a whim. Such legislative ambiguity will in turn have a chilling effect on health care subrogation in the state. The bill also creates extra-contractual liability on the part of any auto, property or workers compensation companies that pay such healthcare subrogating claims without such written consent. Senate Bill 578 will have hearings shortly in Louisiana.
As reported by the Amicus Committee for the National Association of Subrogation Professionals, Weltman, Weinberg and Reis, Co., LPA member.