Health Insurer Not Entitled to Recover Subrogation Claims for Deceptive Tobacco Industry Marketing Activities but May Be Able to Recover on Direct Claim

Blue Cross and Blue Shield of New Jersey, Inc. v. Philip Morris USA Inc., 344 F.3d 211 {2d Cir., 2003); 12(38) BNA's Health Law Reporter 1473-74 (Sept. 25, 2003)

The Second Circuit ruled a health insurer was not entitled to recover over $11.8 million on subrogation claims associated with treating the tobacco-related illnesses of the individuals it insured. The insurer argued the tobacco companies engaged in a scheme to distort public knowledge of the risks of smoking and this behavior resulted in the insurer paying increased costs for medical services provided to subscribers with smoking-related medical conditions. The court determined the insurer failed to adequately define the identities and claims of those individuals whose rights it was asserting and thus this claim must be dismissed...

Found in DMHL Volume 23 Issue 1