CT HB06221

Allows self-insured towns, cities, or boroughs to place a lien on settlements or judgments to recover medical expenses paid for employees and dependents when injuries result from third-party negligence or recklessness.

Prohibits commercial insurance companies and stop-loss insurers from recovering any amounts from tortfeasor recoveries; only self-insured municipalities using their own revenues may seek reimbursement.

No lien can be enforced when the municipality paid $15,000 or less in medical expenses for the injured employee or dependent.

Liens must be reduced by the employee's percentage of comparative negligence, legal fees and costs as a percentage of total recovery, and applicable equitable defenses such as the make-whole doctrine.

Municipalities must provide written notice of the lien either through the plan coverage booklet in conspicuous bold font or prior to settlement/judgment, and must respond to lien amount requests within 30 days or forfeit the lien claim.