Dennis Apuan

DENVER - House Bill 1168, sponsored by Rep. Claire Levy (D-Boulder), which guarantees that people who have been awarded insurance claims will be “made whole,” or paid in full, before the health insurers, received approval from the House with a bi-partisan vote of 42-20 today.

Currently, insurance companies in Colorado are allowed to get paid twice--once through the premiums they charge for coverage, and again by taking an up-front cut of whatever restitution victims get from responsible parties. In fact, injured people, not insurance companies, are the ones who must pursue restitution after an accident. Insurance companies sit on the sidelines, without helping, and then after a settlement is made, they can take money from the injured person.

“I am proud to stand up for the rights of innocent victims over the insurance industry,” said health committee member Rep. Dennis Apuan (D-Colorado Springs). “HB 1168 says that the accident victim can get paid before the insurance company gets repaid. Insurance companies should not continue to get paid twice for coverage, while injured people get little or no compensation for their suffering. I can sum this up in two words: People First.”

Rep. Judy Solano (D-Adams County) said, “Big insurance gets paid twice under the current set-up: first they get our premiums, and if I’m the innocent victim in an accident, they get paid before I do! This bill simply flips a wrong from a right. It’s morally right for real people to get paid for their losses before insurance companies get to take their cut.”

Rep. Claire Levy describes the bill with this scenario: “Let’s pretend a driver named Mr. Hill, speeding, runs a red light and broadsides me in my car. I suffer severe injuries that cost over $30,000, which my health insurance company has paid on my behalf. I miss weeks of work and return to work on a reduced schedule. I have lost $25,000 in wages as of when I file my claim. Because of my injuries, I will not get back to my former level of earnings for several years, which will cost me over $100,000 in loss of future earnings. I will face $10,000 more in medical costs. My injuries will cause early onset arthritis; walking is painful; and I can no longer enjoy my active lifestyle. Conservatively, Mr. Hill’s negligence has caused $200,000 in damages to me.

Taking advantage of Colorado’s low insurance requirements, Mr. Hill only carries $25,000 in liability insurance. So that’s all I can hope to collect from him.

Here’s the big problem: under existing law, my health insurance company – to whom I’ve been paying my premiums for years -- can demand that I turn that entire amount over to them. They’ve been paid twice, while I’ve got nothing.

That leaves me with nothing for my lost wages, future medical expenses, loss of future earnings, pain and loss of enjoyment of life. That also leaves me wondering what I received in return for the premiums I paid to my health insurance company all those years.”