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Key: (1) language to be deleted (2) new language

                             CHAPTER 219-H.F.No. 96 
                  An act relating to insurance; health plans; 
                  prohibiting provisions that grant the health carrier a 
                  subrogation right, except where the covered person has 
                  been fully compensated from another source; proposing 
                  coding for new law in Minnesota Statutes, chapter 62A. 
           Section 1.  [62A.095] [SUBROGATION CLAUSES REGULATED.] 
           Subdivision 1.  [APPLICABILITY.] No health plan shall be 
        offered, sold, or issued to a resident of this state, or to 
        cover a resident of this state, unless the health plan complies 
        with subdivision 2. 
           Subd. 2.  [SUBROGATION CLAUSE; LIMITS.] No health plan 
        described in subdivision 1 shall contain a subrogation, 
        reimbursement, or similar clause that provides subrogation, 
        reimbursement, or similar rights to the health carrier issuing 
        the health plan, unless:  
           (1) the clause provides that it applies only after the 
        covered person has received a full recovery from another source; 
           (2) the clause provides that the health carrier's 
        subrogation right is subject to subtraction for actual monies 
        paid to account for the pro rata share of the covered person's 
        costs, disbursements, and reasonable attorney fees, and other 
        expenses incurred in obtaining the recovery from another source 
        unless the health carrier is separately represented by an 
           If the health carrier is separately represented by an 
        attorney, the health carrier and the covered person, by their 
        attorneys, may enter into an agreement regarding allocation of 
        the covered person's costs, disbursements, and reasonable 
        attorney fees and other expenses.  If the health carrier and 
        covered person cannot reach agreement on allocation, the health 
        carrier and covered person shall submit the matter to binding 
           Nothing in this section shall limit a health carrier's 
        right to recovery from another source which may otherwise exist 
        at law. 
           For the purposes of this section, full recovery does not 
        include payments made by a health plan to or for the benefit of 
        a covered person. 
           Subd. 3.  [RETROACTIVE AMENDMENTS REGULATED.] No addition 
        of, or amendment of, a subrogation, reimbursement, or similar 
        clause in a health plan shall be applied to the disadvantage of 
        a covered person with respect to benefits provided by the health 
        carrier in connection with an injury, illness, condition, or 
        other covered situation that originated prior to the addition of 
        or amendment to the clause. 
           Sec. 2.  [62A.096] [NOTICE OF SUBROGATION CLAIM REQUIRED.] 
           A person covered by a health carrier who makes a claim 
        against a collateral source for damages that include repayment 
        for medical and medically-related expenses incurred for the 
        covered person's benefit shall provide timely notice, in 
        writing, to the health carrier of the pending or potential 
        claim.  Notwithstanding any other law to the contrary, the 
        statute of limitations applicable to the rights with respect to 
        reimbursement or subrogation by the health carrier against the 
        covered person does not commence to run until the notice has 
        been given. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective January 1, 1996, and apply 
        to plans in effect on that date and plans offered, sold, or 
        issued on or after that date. 
           Presented to the governor May 22, 1995 
           Signed by the governor May 24, 1995, 10:17 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes