HCS HB 1233 -- SUBROGATION RIGHTS OF PUBLIC ENTITIES

SPONSOR:  Luetkemeyer (Dixon)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Financial Services by a vote of 19 to 0.

This substitute grants public entities that self-insure for their
health care benefits the right to subrogation in the same manner,
with the same rights, obligations, and available remedies that
the Department of Social Services has with the Medicaid Program.

FISCAL NOTE:  Estimated Income on General Revenue Fund of Unknown
in FY 2005, FY 2006, and FY 2007.  May exceed $100,000 annually.
Estimated Income on Other State Funds of Unknown in FY 2005, FY
2006, and FY 2007.  May exceed $100,000 annually.

PROPONENTS:  Supporters say that every year some public employees
are unjustly enriched after they are paid by a third party for
their medical bills from an injury when their employer actually
pays those bills.  The public entity should be allowed
subrogation rights to collect that money.  For example,
Springfield's public utilities paid out $34.7 million in health
care benefits last year, and roughly 2% of those were actually
caused by third parties who were legally responsible for the
medical bills.  Approximately 4% of the Springfield R-12 School
District's claims could have been subrogated last year.  Public
entities should be allowed to pursue these damages from third
parties.  This is already the law with Medicare, Medicaid, and
worker's compensation claims.  Public entities all over the state
have been forced to make cuts because of budget restraints, and
this is money that these entities could be saving.

Testifying for the bill were Representative Dixon; City of
Springfield; Springfield R-12 School District; Department of
Transportation; and Missouri Association of Municipal Utilities.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am