The United States Supreme Court will determine whether an employee benefits plan govered by ERISA is subject to equitable limitations when it demands reimbursement of benefits paid a covered employee who recovers money in personal injury and wrongful death litigation. The case that will be reviewed is U.S. Airways, Inc.…
Articles Posted in Subrogation
9th Circuit Limits Rights of ERISA Health Insurer
The United States Court of Appeals for the Ninth Circuit has ruled that an employer-based health insurance plan did not have a right to full reimbursement from a personal injury plaintiff who recovered only a fraction of her damages from the wrongdoer. The case is CGI v. Rose, No. 11-35127…
Medicare Issues Proposed Rules on “Future Medicals”
The Centers for Medicare & Medicaid Services have issued proposed rules to address the issue of how Medicare beneficiaries will protect Medicare’s interest when future medical care is claimed or the settlement or judgment released (or has the effect of releasing) claims for future medical care. Here are the proposed…
Attorney Sued for Failing To Protect Subrogation Interest; Ordered to Re-Pay Trust Account Pending Outcome of Case
A personal injury attorney may be sued in federal court for the failure to pay a subrogation interest subject to ERISA and required to put money back into his trust account pending the outcome of the subrogation fight. So holds the United States District Court for the Northern District of…
Will A Special Needs Trust Trump An ERISA Subrogation Interest?
The Court of Appeals for the Fifth Circuit has ruled that the assets held in a special needs trust created out of the proceeds of a personal injury settlement are not available to satisfy an ERISA subrogation interest. The Court held that the injured plaintiff never had possession or control over…
Third Circuit Says Equity Applies to Subrogation Rights Under ERISA Plan
The Court of Appeals for the Third Circuit has had that equitable principles such as unjust enrichment apply to the subrogation rights of an employer under an ERISA plan. In U.S. Airways, Inc. v. McCrutchen, No. 10-383 (3rd Cir. Nov. 16, 2011), McCrutchen was seriously injured in a car wreck.…
The Common Fund Doctrine and Med Pay Claims
The Alabama Court of Civil Appeals has ruled that the common fund doctrine applies to the determination of the payment of attorneys’ fees when monies for payments made under medical payments coverage are collected in a personal injury case. In Mitchell v. State Farm, No 2100184 (Ala. Civ. App. 10/7/11),…
Worker’s Compensation Liens for Future Medical Bills
The recent decision of the Tennessee Court of Appeals in Joshua Cooper, et al. v. Logistics Insight Corp., et al., No. CV (Tenn Ct. App. May 16, 2011) potentially upsets the apple cart for workers’ compensation liens on third-party tort recoveries. The prevailing view for a decade has been that the…
Re-Payment of Health Insurance Plans Covered by ERISA
On a weekly, if not daily, basis, plaintiff’s personal injury lawyers have to deal with subrogation interests. Many of those subrogation claims involve the law of ERISA. This opinion out of the Illinois Court of Appeals addresses the issue of disputes over the amount of money to be re-paid…
AAJ Seminar on Changes to Medicare Subrogation Reporting Rules
AAJ Education’s Breaking News in Medicare Secondary Payer Requirements: Moratorium on Reporting Teleseminar, November 23, will give you the breaking news and latest on Medicare Secondary Payer reporting requirements, the Bradley v. Sebelius 11th Circuit decision, what the moratorium means, and what happens next. To view the agenda and faculty,…