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Collateral Source Rule Interpreted By NJ Appellate Division.

March 2, 2010

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In County of Bergen Employee Benefit Plan v. Horizon Blue Cross and Blue Shield Of New Jersey, the Apellate Division held that under the Collateral Source Rule, a county with a self insured benefits plan for its employees is not entitled to pursue a subrogation action to recover medical expenses the plan paid to its insured. The insured was a county employee who brought personal injury/ medical malpractice claims against third party tortfasors. In Perreira v. Rediger, the Court held that the collateral source rule, N.J.S.A. 2A:15-97, barred the plaintiff's healthcare carrier from recovering medical expenses by reimbursement or subrogation, with limited exception. The found that nothing in Perreira suggested that there was a statutory exception for a self insured municipality.
Please contact our New Jersey office with any collateral source rule questions.
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