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Click on your state for a brief summary of that state's laws affecting or impacting subrogation recoveries.
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New Jersey Subrogation Laws
Sections
State Subrogation
Made Whole doctrine
Common Fund
Collateral Source Rules
Hospital Lien Act
Medicaid Statute
State Subrogation
NO SUBROGATION – NJSA §2A:15-97. This statute was preempted by Levine v United Healthcare Corp., 402 F3d 156 (CA 3 2005). The court held that the New Jersey statute, which prohibited subrogation and reimbursement provisions in health insurance policies is preempted by ERISA section 514, 29 U.S.C. section 1144.
Made Whole doctrine
New Jersey has only adopted the Made Whole Doctrine for automobile insurance subrogation NOT health insurance subrogation.
Common Fund
N/A
Collateral Source Rules
NJSA §2A:15-97 is now bad law because it was preempted by Levine v United Healthcare Corp, 402 F3d 156 (CA 3 2005). The statute states that all judgments/settlements will be reduced by the amount of insurance benefits the insured received, thereby eliminating subrogation for the insurer.
Hospital Lien Act
- NJSA §2A:44-38: the amount of the hospital lien shall not exceed ward rates up to the date of payment of compensation
- NJSA §2A:44-41: no lien unless the hospital files written notice with the county clerk not later than 90 days after the date of first treatment. 10 days after filing the hospital must mail notice to the interested parties
Medicaid Statute
NJSA §30:4D-7.1: recipient must give written notice to Director when bringing claim against third party
- Reduction: the division shall be reimbursed in full subject to a pro rata deduction for counsel fees, costs, or other expenses incurred by the recipient