NHS Costs Recovery
As many readers of this will know the Road Traffic (NHS Charges) Act 1999 means that compensators who agree to pay compensation for injuries suffered by another person in a road traffic accident are obliged to meet the cost of any necessary NHS hospital treatment received by the injured person up to a fixed ceiling per claim. This scheme is currently administered by the Compensation Recovery Unit who also administer the scheme for recovery of state benefits.
It has long been anticipated that the scheme would be extended to cover all personal injury cases. Originally it was anticipated the scheme would be extended from 1st April 2005, although that date was subsequently postponed. The Compensation Recovery Unit have this week issued guidance advising that subject to parliamentary approval of the regulations to support the legislative framework, the extended scheme is due to commence on 29th January 2007, for all accidents occurring on or after that date. For cases involving accidents before that date it is envisaged the existing system will still apply.
The intention is that the scheme will operate as far as possible in the same way as the current road traffic scheme. The enabling legislation will be the Health and Social Care (Community Health and Standards) Act 2003, with supporting regulations being enacted by both the English and Scottish Parliaments for their respective jurisdictions.
There are however several changes that should be noted.