New York Anti-Subrogation Bill Passes!

New York took the drastic step yesterday of passing a law that eliminates subrogation and reimbursement rights for numerous lines of business. Last night around 9:30 p.m., the New York Assembly and Senate passed the anti-subrogation bill that was promoted by the Governor. Although the bill as passed by both chambers technically awaits the governor’s signature, it seems a foregone conclusion that it will be enacted. The text of the bill is posted on the NASP website under the Amicus Section.

The bill provides that once a plaintiff settles a case for personal injury that the insurance company does not have subrogation and/or reimbursement rights to seek recovery of “the cost of health care services, loss of earnings or other economic loss.”

Additionally, the application of the collateral source rule is altered in all actions for personal injury, property damage or wrongful death.

The wording of the bill in parts lacks clarity, and may itself be subject to varied interpretation. We caution all members to review the bill's effect on their related matters.

NASP thanks all its members and supporters who took time to make subrogation’s voice heard in New York.

The Anti-Subrogation efforts are a reality, and we must all stay aware of these efforts as they may continue to develop and spread elsewhere.