Anti-Subrogation States – Defeating a Lien Before it Exists

Sometimes, a lien never has to exist. Sometimes, the insurance company never stands a chance. And sometimes, a client keeps 100% of her net settlement. These times are most often settlements in anti-subrogation states – or states that statutorily refuse to allow subrogation, liens, or insurance reimbursement.

The eight officially anti-subrogation states are:

  1. Arizona
  2. Connecticut
  3. Kansas
  4. Missouri
  5. New Jersey
  6. New York
  7. North Carolina
  8. Virginia

These states statutorily do not allow subrogation for commercial health plans. But when is subrogation allowed in these states?

Generally, self-funded ERISA plans, Federal Employee Health Benefit Act (FEHBA) plans, Medicare, and Medicaid can all claim a lien in these states because they follow federal law (not state law). It’s that simple. Other states have rules that limit subrogation (like Georgia) or that require it be part of the insurance contract (like Michigan and Illinois).

Unfortunately, anti-subrogation doesn’t mean you can ignore insurance companies. The best policy is to review and resolve all health insurance liens – sometimes you’ll find they have no rights and sometimes you’ll find that the plan’s rights supersede state law (e.g., ERISA liens).

The attorneys at MASSIVE have reviewed hundreds of ERISA Plans. If you are not 100% positive you are able to handle the ever-changing world of ERISA law, why not consider someone who can assist with this task and allow you to handle the other important daily activities of your cases? See a case study of how we successfully reduced a complicated ERISA lien here.

Many firms don’t plan for lien resolution as early as they could. If you are anticipating an upcoming settlement, have settled cases which you’d like to disburse, or simply have questions about lien resolution such as when or how to begin, please contact us at 833-GO-MASSIVE and discover how MASSIVE can deliver exceptional results for you.