Insurers agree to reduce the amount of liens placed on Vioxx settlements from personal injury lawsuits.
Wired PR News.com – In what has been deemed an unusual settlement, health insurers have agreed to limit the amount recovered from liens previously placed on Vioxx personal injury settlements. As reported by the Associated Press (AP), 100 private insurers have agreed to participate in a deal that will limit their recovery from liens to half of the previous amount.
As noted in the AP report, for settlements of $100,000, insurers would recoup a maximum of 15 percent. For settlements of $250,000 or more, the amount recovered would be capped at 10 percent. The agreement is stated to be the first of its kind for insurers involved in a mass litigation case.
Vioxx maker, Merck & Co., reached a settlement with most of the claimants who brought personal injury lawsuit against the drug manufacturer, for $4.85 billion. The company’s pain medication Vioxx was the focus of thousands of lawsuits by users who alleged the drug harmed them. Fifty thousand suits will be settled with the agreement.
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