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May 26, 2013 /PRNewswire-USNewswire/ -- A bill that changes the way health care plans are reimbursed following liability lawsuits and puts more money into the pocket of injured parties was signed into law by Governor
Rick Perry today.
The measure makes it easier to settle meritorious cases, thus saving plaintiff and defense time and money.
"We greatly appreciate the Governor seeing the sensibility of this measure and signing it into law," said
Mike Hull, the general counsel for Texas Alliance For Patient Access, a statewide medical lawsuit reform group that supported the bill.
Under previous law, a person could get injured, sue for damages, receive a settlement and then be required to pay the entire settlement to their health insurer as reimbursement for medical expenses.
"There was no incentive for an injured person to settle for a reasonable sum, if they received no money," Hull said. "Defendants often had to pay an inflated price to settle or risk going to trial because they couldn't reach an agreement," he said.
Among those who advocated for the bill was
Dustin Strelsky, a 15-year old from the small central
Texas town of
Rockdale, who was left paralyzed after being hit by a drunk driver. Strelsky's family agreed to release the driver in exchange for his insurance policy but they couldn't reach an agreement with Strelsky's own health insurer.
Strelsky's family asked the health plan to let him keep some of the settlement money. The health plan refused and sued Strelsky's parents, claiming they were entitled to 100% of the settlement and that the wheel-chair bound teenager should receive nothing. The case settled only after the Texas House considered the bill in committee.