Actually, that is not what the bill will do. What it does in cases where the liable party has no insurance or not enough to cover your expenses and your own carrier picks up the bill for your meds, you collect your damages before the insurer gets reimbursed and if and only if the carrier recovers would the carrier be liable for a portion of the contingent attorney fees.

In California, that is what uninsured motorists coverage does, so this appears to be a statutory application of that concept.

http://www.lawweekonline.com/tag/hb10-1168/
fyi, the article refers to "separation rights" but what it should say is "subgrogation rights."