Last month, New York Governor, David A. Paterson, signed a new law that prohibits private health insurance companies to seek reimbursement from the proceeds of a settlement in a personal injury action for medical treatment pertaining to the settled action. This law took effect immediately and is applicable to all pending cases.
As a New York personal injury attorney, it was always very difficult for me to explain to my clients, injured workers and victims of accidents, that after they settle their case, if any portion of their medical treatment for injuries sustained in their accident was paid for by their private medical insurance, that insurance company could have right to seek reimbursement from the proceeds of that settlement. Many of my clients were furious that they had to pay huge premiums every month to have medical coverage and in addition to that they had to pay back out of their pockets the amounts covered by that insurance. Now, it is no longer an issue!
This new law does not apply to statutory liens such as Medicaid, Medicare, Workers' Compensation and excess no-fault benefits. If you were injured at work or were a victim of an accident always contact an experienced New York personal injury lawyer for a free consultation.
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