HOUSE . . . . . . . . No. 4362
The Commonwealth of Massachusetts
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HOUSE OF REPRESENTATIVES, February 12, 2024.
The committee on the Judiciary, to whom was referred the petition
(accompanied by bill, House, No. 1750) of Jeffrey N. Roy, Margaret R.
Scarsdale and John Barrett, III relative to equitable allocation of recovery
proceeds for certain subrogation claims, reports recommending that the
accompanying bill (House, No. 4362) ought to pass.
For the committee,
MICHAEL S. DAY.
 FILED ON: 2/5/2024
HOUSE . . . . . . . . . . . . . . . No. 4362
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act concerning equitable allocation of recovery proceeds for subrogation claims.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 70A of chapter 111 of the General Laws, as appearing in the 2022
2 Official Edition, is hereby amended by inserting after the first sentence the following sentences:-
3 Any attorney’s fees and costs incurred in enforcing liability and obtaining such judgment,
4 settlement or compromise shall be divided between the health maintenance organization,
5 hospital, medical or dental service corporation and the injured person in proportion to the amount
6 received by them from any such judgment, settlement or compromise. If the settlement or
7 judgment, or funds available to satisfy the judgment, are less than the amount of the injured
8 person’s total damages, the court may, after a hearing and evaluation of the injured party’s total
9 damages, reduce the amount of the lien.
10 SECTION 2. Said chapter 111, as so appearing, is hereby further amended by inserting
11 after section 70D the following section:-
12 Section 70D ½. Notwithstanding the provisions of sections 70A to 70D, inclusive, and
13 any contractual term to the contrary, no health maintenance organization or group or individual
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14 medical or disability insurer that has provided benefits for covered services to an injured person
15 shall have a lien, right of reimbursement, subrogation claim or claim of recoupment upon any
16 recovery or sum had, collected or to be collected, whether by judgment, settlement or
17 compromise, from another person as damages on account of such injuries for more than the
18 proportionate share of said recovery or sum subject to its lien, right of reimbursement,
19 subrogation claim or claim of recoupment which the amount of benefits so provided for covered
20 services bears to the total value of the injured person’s damages.
21 The entity which provided benefits or the injured person may petition the court in which
22 any case seeking damages on account of such injuries is pending, or in a court in which such
23 case could be properly filed had settlement not been attained before commencement of suit, for a
24 determination of the reasonableness of the settlement and the fair allocation of amounts payable
25 thereunder, including any attorneys’ fees or costs incurred obtaining any recovery or sum from a
26 third party as damages on account of such injuries. A hearing on such petition shall adhere to the
27 same procedural requirement as provided in section 15 of chapter 152.
28 SECTION 3. Chapter 231 of the General Laws, as so appearing, is hereby amended by
29 inserting after section 140C½ the following section:-
30 Section 140D. In any action in which an injured person enters into a settlement with or
31 obtains a judgment from a third party, and benefits for such person’s injuries have been paid
32 under chapter 152, and the injured person and the insurer paying said benefits do not agree to the
33 amount each is entitled to recover out of such settlement or judgment, the court or authority
34 authorized to approve settlements under section 15 of chapter 152 shall determine a just and
35 reasonable apportionment thereof in accordance with this section; provided, however, if the
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36 settlement or judgment, or funds available to satisfy the judgment, are less than the amount of the
37 injured person’s total damages, the court or other authority authorized to approve settlements
38 under section 15 of chapter 152 may after hearing and evaluation of the injured party’s total
39 damages reduce the amount of the lien. Except in the case of a final judgment, the injured party
40 may withdraw consent to settlement if dissatisfied with the apportionment by the court.
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Statutes affected:
Bill Text: 111-70A