An Act concerning equitable allocation of recovery proceeds for subrogation claims

This bill modifies how health insurers and medical providers recover costs when an injured person receives money from a third party for their injuries. It requires that legal fees and costs be shared between the provider and the injured person based on the proportion of the total recovery each receives. Additionally, the law limits the amount insurers can claim back to their specific share of the total damages, rather than allowing them to take more than their proportionate part of the settlement. If the total recovery is less than the injured person's total damages, courts may reduce the insurer's claim after reviewing the case. The legislation also gives courts the authority to decide a fair split of settlement funds if the injured person and the insurer cannot agree on the amounts.