“This ‘double deduction’ means that the plaintiff, instead of receiving a windfall, comes up short,” said the Alaska Supreme Court, striking down a law letting insurers claw back payments to patients who receive malpractice settlements. (via AlaskaBeacon)
The Alaska Supreme Court ruled Friday that a 46-year-old law limiting financial awards in medical malpractice lawsuits is unconstitutionally biased against Alaskans with medical insurance., approved unanimously by the court but written by Justice Dario Borghesan, was issued following a six-year legal struggle by a woman who was injured during gallbladder surgery and could increase compensation received by insured Alaskans who are injured by medical malpractice.
Since the law was passed, the court noted, most private insurance companies have begun using “mandatory subrogation” clauses in their contracts. “This ‘double deduction’ means that the plaintiff, instead of receiving a windfall, comes up short,” the court said. That was the situation with the woman injured during gallbladder surgery. According to figures she submitted to the high court, she received $349,049.87 from insurance but was awarded $250,000 in damages, less than the maximum the insurance company could claw back.
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