Texas Court Backs Private Right Of Action For Medicare Advantage Organizations

In Humana v. Farmers Texas County Mutual, et al., 13-cv-006111 (W.D. Tex. Sept. 24, 2014), the plaintiff, a Medicare Advantage Organization (MAO), sought reimbursement from a no-fault automobile insurer. The magistrate judge previously granted the defendant’s motion to dismiss holding that MAOs did not possess a private right of action under the Medicare Secondary Payer…

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Illinois Legislature Outsmarts Illinois Court of Appeals

Governor signs amendment to § 143.24d making arbitration of small auto property claims mandatory but not binding.   In 2013, Illinois enacted a new statute requiring the mandatory arbitration of collision subrogation claims involving less than $2,500. 215 I.L.C.S. § 5/143.24d. The new § 143.24d required mandatory, binding arbitration of smaller property subrogation cases between…

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7,540 Reasons To Include Your Insured’s Deductible In Your Subrogation Claim

Insured motorists are called upon every day to pay their deductibles in order for their carriers to cover the necessary repairs to their motor vehicles after accidents. Many carriers refuse to include those deductibles in the subrogated claims they make against the other motorists involved in accidents with their insureds. Because they are left on…

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District Of Columbia Plans To Limit Time For Compensation Carrier To File Subrogation Suit

On June 27, 2013, the Council of the District of Columbia enacted emergency and temporary legislation resulting in an amendment to § 32-1535 which narrows the window during which a workers’ compensation carrier has to file a third-party action. An injured employee had six months after accepting a workers’ compensation award in which to file…

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Hedging Bets For Subrogation Success

 A number of changes have affected the success of subrogation in the healthcare insurance setting – changes that financial executives need to be aware of in order to both mitigate negative impact and maximize opportunities. Kurt Ullman, this article’s author, interviewed Gary Wickert for this article, published in Healthcare Finance News on May 14, 2014. To read…

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2nd Circuit Strips Fully-Insured Plans Of Preemption Of New York Anti-Subrogation Law

For the time being, trial lawyers are celebrating the recent 2nd Circuit decision in Wurtz v. Rawlings Co., LLC, 2014 WL 3746801 (2nd Cir. 2014), which on July 31st, held that a class action suit seeking to enjoin three defendants from seeking reimbursement of benefits paid under fully-insured health plans based on New York’s anti-subrogation…

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Recovery Of Allocated Loss Adjustment Expenses In Property Subrogation Cases: Subrogating For More Than Your Insured’s Property Damage

Property insurers along all lines could simplify their business practices and lower their overhead considerably by simply paying any and all property damages, claims, expenses, and consequential damages alleged to have been incurred by and in the amounts claimed by their insureds. Obviously, such a practice would be a shortcut to insolvency and would lead…

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Unpublished New Jersey Decision Calls Into Question Comp Carrier’s Subrogation Rights Against UM/UIM Benefits

A recent unpublished and quite puzzling decision from the New Jersey Superior Court, Appellate Division, threw decades of established New Jersey subrogation law into question when it announced that a workers’ compensation carrier has no subrogation/reimbursement rights on the medical portion of a third-party claim against an uninsured/underinsured motorist (UM/UIM) carrier. The Court in Dever…

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New Victories For Subrogation Against FDCPA Lawsuits

For nearly twenty years, the plaintiffs’ bar and negligent third parties have been trying to use the Federal Debt Collection Practices Act (FDCPA) as a weapon against legitimate subrogation claims. While the fight continues, two recent federal district court decisions came down in favor of subrogation yet again. Both cases center on a third party’s…

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Texas Clarifies Workers’ Compensation Subrogation In Death Cases

Texas has historically been a very favorable venue for workers’ compensation subrogation. It has not been without its gray areas. In death cases, when an employee dies and either he and/or his surviving family members have received workers’ compensation benefits, a careful analysis is required in order to determine the subrogation and future credit rights…

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