OLR Bill Analysis
AN ACT CONCERNING RECOVERY OF PAYMENTS FROM COLLATERAL SOURCES BY A MUNICIPALITY WITH A SELF-INSURED HEALTH PLAN.
This bill allows municipalities with self-insured health plans, following an adjudicated personal injury or wrongful death claim or action, to recover (subrogate) the costs of collateral source payments they made. Current law prohibits insurers and others providing collateral source payments from recovering the cost of such benefits from a defendant or anyone else; this prohibition applies regardless of whether a claim or action is resolved by settlement or judgment.
By law, payments from “collateral sources” are those made to, or on behalf of, a claimant under an insurance policy or other contract providing health benefits or reimbursements for health expenses (other than settlements) (CGS § 52-225b). Courts are generally prohibited from reducing an award of economic damages for a personal injury or wrongful death claim by the amount paid by collateral sources, if the right of subrogation exists (CGS § 52-225a).
The bill also makes technical changes.
EFFECTIVE DATE: October 1, 2017
SB 885, reported favorably by the Judiciary Committee, contains an identical provision.
Planning and Development Committee