Topeka – State Representatives Lance Kinzer (R-Olathe) and Kevin Yoder (R-Overland Park) today announced new legislation aiming to eliminate "double recovery" in personal injury lawsuits. Seeking to spur economic growth and reduce health care costs, the legislators are advancing legislation to reform the state's litigation system. "Kansas law currently allows plaintiffs to sue and recover twice for the same injuries," said Yoder, adding. " Kansas businesses and consumers are being drained by this heavy burden."
The legislation provides for a right of subrogation by Kansas insurance companies. Under current administrative regulations, insurance companies don't have this right. This allows an injured person to sue a defendant for damages, including medical costs, even if those medical costs have already been paid for by the plaintiff's insurance company. The insurance company that paid for the medical bills is prohibited from recovering its out of pocket costs back from the Plaintiff. Instead, current law allows the plaintiff to receive a windfall, which the legislators argue drives up the insurance costs for everyone else.
"Exorbitant health care costs are a real issue in Kansas and the legislature should act to close the loopholes that allow a few to benefit, while hardworking Kansans pay," said Kinzer.
The two sponsors, both Republicans, have made economic development and reduction of health care costs key issues in the 2006 Legislative session. If passed, the tort reform legislation would have a significant impact on the amount of costly litigation in Kansas.
"As insurance costs go up, Kansans are looking for relief that would reduce these expenses without an increase in government mandates or taxes," said Yoder.
By eliminating the government regulation that prohibits insurance companies from recouping lost costs, the legislators hope to level the system and eliminate the double recovery that plaintiffs have taken advantage of.
"This legislation would take a significant step towards reducing the cost of doing business in Kansas" added Kinzer.