The second was General Obligations Law § 5-335, the state’s anti-subrogation rule. It presumes that a personal-injury settlement “does not include any compensation for the cost of health care services, loss of earnings or other economic loss” already covered by an insurer. The law spares a few categories – Medicare, Medicaid, no-fault, and “an insurance contract providing workers’ compensation benefits.” Short-term disability, the court said, is “separate and distinct from workers’ compensation benefits,” so it doesn’t qualify.
