Arizona CA holds Medicare Advantage plans preempt/can subrogate

In a very well detailed opinion the Arizona Court of appeals has followed the NY courts in Trezza v.Trezza in clearly outlining in exacting detail in the matter of the Estate of Ethridge v. Recovery Management Systems, that Medicare Advantage Plans preempt Arizona ( and presumably all other) State Common law anti-subrogation doctrines.

see opinion

Bipartisan Budget 2013 Overules Ahlborn

On December 26, 2013, President Obama signed the Bipartisan Budget Act of 2013. Section 202
of the Act is entitled “Strengthening Medicaid Third-Party Liability.” The new law amends
portions of the federal Medicaid Act in an attempt to override the application of the allocation
theory derived from Arkansas Dept. of Health & Human Srvs. v. Ahlborn, 547 U.S. 268 (2006).
There are three main amendments to the statutes which take effect on October 1, 2014.

Full Article PDF

Courtesy of PAUL

Supreme Court Rules ERISA Subrogation preempts State Law

The Supreme Court has ruled that State equitable principles do not preempt ERISA plan language. Plaintiff in a UIM settlement refused to reimburse the ERISA self-funded plan claiming that it was inequitable that the Plan recover all of the third party funds with nothing being left for the participant. The Court ruled that there was an equitable lien by agreement and that the Plan language was clear and not subject to equitable interpretation . See case.