This is the “Anti-Subrogation” bill, and it would legislatively limit a Plan’s contractual right to be reimbursed for medical care if the member/patient received less than a full recovery from a third party who might have liability. Based upon the outcome of personal injury litigation, it may reduce reimbursement to less than a third of the amount recovered. The bill permits attorney fees and expenses to further reduce the Plan’s recovery. This would affect all non-ERISA Plans, so it would impact the self-funded plans of all governmental entities and church plans. It could cause all effected Plans to exclude any claims that might involve third party liability if they lose the right to first-dollar recovery. This bill subverts the best interests of government and church workers in Texas to the enrichment of personal injury attorneys.
Please ask your representatives to vote against these two bills. Please ask your clients to reach out to their legislative representatives to do the same. Please take an active role in controlling the cost of healthcare today!