State Courts Rule On Insured-Group And No-Fault Auto COB
High courts of Maryland and Montana handed down contrasting decisions relating to coordination of insured group-health and personal insurance protection (PIP) benefits. in both cases, a group plan refused to cover medical expenses for which PIP reimbursement was provided through auto liability policies. In Maryland, a court gave precedence to a provision saying group plans can coordinate with any entity that paid health expenses. Montana’s insurance commissioner threw out Blue Cross’ (BCBS) group-plan enrollment forms, which reserved the right to not pay for an injured member who received or benefits from liability insurers. The court rebuffed BCBS’ challenge, ruling that the Blue would be entitled to subrogation only after it paid benefits to its insured.
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