Case Update: October 2001
HEALTH INSURER LIENS/COLLATERAL SOURCE RULE
Rick Gallin’s three year campaign to extinguish health care liens on third party claims has ended with a resounding success. By a unanimous vote, the New Jersey Supreme Court reversed the Appellate Division to hold in Perreira v. Rediger that the Collateral Source Rule, N.J.S.A. 2A:15-97, bars liens by health insurers. This decision represents a major victory for the liability insurance industry, as it places the burden of paying for an injured plaintiff’s medical bills on the health insurers.
Of course, health insurance liens generally have no bearing on auto accident cases, in which Personal Injury Protection benefits usually cover medical bills and PIP carriers are barred from pursuing reimbursement unless the tortfeasor was operating a commercial vehicle. While there are rare exceptions, health care liens generally do not affect auto cases. [MORE]