Subrogation Laws in All 50 States - Interactive Map

[subscribe_to_unlock_form]

Click on your state for a brief summary of that state's laws affecting or impacting subrogation recoveries.

 

To receive a call back today to answer any of your questions, email us at [email protected]

[/subscribe_to_unlock_form]

Oregon Subrogation Laws

State Subrogation

YES, authorized by statute Or. Rev. Stat. Ann. §742.538

The insurer is entitled to the proceeds of any settlement/judgment to the extent of such benefits furnished by the insurer less the insurer’s share of expenses, costs, and attorney’s fees incurred by the insured.

In calculating respective shares of expenses/costs/fees, the basis of allocation shall be the respective proportions borne to the total recovery by:

  • Such benefits furnished by the insurer; and
  • The total recovery less (a)

Any provisions in an insurance policy giving rights to the insurer relating to subrogation shall be construed and applied in accordance with the provisions of this section

Made Whole Doctrine

NO, but does apply to PIP subrogation

  • Oregon Senate Bill 421 was signed into law on June 20, 2019, affects PIP subrogation under either § 742.536 (PIP Lien) or § 742.538 (direct PIP subrogation). It amended both statutes along with § 742.544 (Oregon’s “Make-Half” or “Make Whole” statute).
  • Amended § 742.544 allows PIP reimbursement only when the insured is (1) fully compensated for his injuries, and (2) the reimbursement is paid from the “total amount of the recovery” in excess of the amount necessary to fully compensate the insured. The phrase “total amount of the recovery” includes: (1) UIM benefits; (2) Liability insurance payments; (3) PIP and/or health insurance benefits received; and (4) any other payment by or on behalf of the tortfeasor. Amendment creates rebuttable presumptions that (1) the amount of any judgment is the amount necessary to make the insured whole; (2) the insured is made whole if the settlement is for less than the liability limits; and (3) the insured is not made whole if the insured recovers the amount of liability limits, UIM limits, or PIP limits. The tortfeasor/liability carrier may not include the PIP carrier’s name on a settlement check. Any reimbursement or subrogation clause which provides any rights other than those set forth in § 742.544 is void and unenforceable.

Common Fund

YES, as indicated in Or. Rev. Stat. Ann. §742.538 (see above)

State Farm Mut. Auto. Ins. Co. v. Clinton, 518 P.2d 645 (Or. 1974) indicates that an express agreement can override a recovery of attorney’s fees (there aren’t any more recent cases to confirm or contradict this)

Collateral Source Rules

Evidence not admissible, plaintiff is entitled to recover the reasonable value for medical treatment received

Hospital Lien Act

  • Or. Rev. Stat. Ann. §87.555: a hospital has a lien to the extent of the amount due to the hospital for the reasonable value of such medical treatment rendered
    • When the injured person has insurance, the hospital shall have a lien upon the amount payable under the insurance policy
  • Or. Rev. Stat. Ann. §87.560: no lien shall be allowed
    • For treatment after a settlement has been reached
    • Against any sum for necessary attorney fees and costs
  • Or. Rev. Stat. Ann. §87.565: to perfect a lien, the hospital must file a notice with the recording officer of the county not 30 days after the discharge of the patient from the hospital and serve a copy of the notice upon all interested parties before the date of judgment
    • Filing of a hospital lien a day or so after the expiration of statutory time limitation is not a defect which raises constitutional questions of due process (Rogue Valley Memorial Hospital v. Salem Ins. Agency, Inc., 510 P.2d 845 (Or. 1973))
  • Or. Rev. Stat. Ann. §87.581: The recipient of the settlement pays attorney’s fees and costs first, then pays the hospital lien

Medicaid Statute

  • Or. Rev. Stat. Ann. §416.530: If a recipient makes a claim, the recipient must immediately notify the Department of Human Services or the Oregon Health Authority
  • Or. Rev. Stat. Ann. §416.540: the department has a lien on a settlement/judgment for all assistance received by the recipient
    • The lien does not attach to the amount of any judgment/settlement to the extent of attorney’s fees/costs
    • The attorney’s lien must be satisfied first
  • Or. Rev. Stat. Ann. §416.550: To perfect the lien, the Authority must file notice of the lien with the recording officer of the county and send a copy of the notice to the interested parties
  • Or. Rev. Stat. Ann. §416.600: when the recipient will incur additional medical expenses after the settlement/judgment, the department may release any portion of its lien to the extent of such anticipated expenses and assistance

To receive a call back today to answer any of your questions, email us at [email protected]