(Warwick, R.I.) Congressman Jim Langevin (D-RI) yesterday joined Democratic colleagues in opposing a little-known proposed section of the Pension Reform Act that would allow insurance companies to collect money before victims are able to cover the costs of hospitals and other bills during their recovery.

This change in the law would harm injured victims and taxpayers by preempting most state insurance laws. Currently, when a person is injured due to someone else’s negligence, the victim’s medical care is often paid for by employer-provided health insurance.  If the injured person subsequently receives compensation in a lawsuit or settlement agreement, the health insurer can be reimbursed, in most states, including Rhode Island, only after the injured person is made whole.  This prevents double recovery and ensures that the injured party is not a burden to the taxpayers.
 
However, under Section 307 of H.R. 2830, the House Pension Reform Act, insurance companies would become first in line to receive reimbursement, rather than the injured person. This provision gives the insurer the ability to sue an individual to recoup the money they paid out to cover the victim’s medical costs before the injured person is made whole. 

“This anti-patient provision penalizes an injured individual for someone else’s negligence,” said Langevin, who joined Senator Ted Kennedy (D-MA) and Congressmen Rob Andrews (D-NJ) and Charlie Rangel (D-NY) for a press conference today on the issue. “Had this provision been in place after my accident in the 1980s, my life would be very different. My parents could have been unable to cover my medical expenses and changing needs if the insurance companies were allowed to sue for payment before my situation was settled. This provision will trump strong laws in states like Rhode Island and allow insurance companies to act against victims. Removing this provision means protecting patient rights.” 

In addition to what this means for patient rights, Langevin also raised concern about how this provision was added to the pension reform legislation.

“Section 307 was never discussed or debated before it was slipped into this critical piece of legislation at the eleventh hour,” said Langevin. “This behavior is indicative of how the Republicans choose to conduct business. This health insurance provision is not germane to the pension legislation it was placed in.”

The Pension Reform Act is currently in conference with the Senate, and Langevin is hopeful that Section 307 will be removed during this process.

“If this section remains, it will have a huge negative impact on countless victims,” said Langevin. “We must work hard to protect the rights of all Rhode Islanders, especially in their times of greatest need.”