13-004684MTR Elsa Parnau Hunt And Eric Hunt, Individually, As Parents Of Ethan Hunt, Deceased, And As Co-Personal Representatives Of The Estate Of Ethan Hunt vs. Agency For Health Care Administration
 Status: Closed
DOAH Final Order on Tuesday, July 29, 2014.


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Summary: Because a valid lien no longer exists, and AHCA's subrogation and assignment rights for reimbursement for medical expenses paid by Medicaid have expired, AHCA is not entitled to any portion of Petitioners' wrongful death settlement.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8ELSA PARNAU HUNT AND ERIC HUNT,

14INDIVIDUALLY, AS PARENTS OF

18ETHAN HUNT, DECEASED, AND AS CO -

25PERSONAL REPRESENTATIVES OF THE

29ESTATE OF ETHAN HUNT,

33Petitioners,

34vs. Case No. 13 - 4684MTR

40AGENCY FOR HEALTH CARE

44ADMINI STRATION,

46Respondent.

47_______________________________/

48FINAL ORDER

50Pursuant to notice, a formal administrative hearing was

58conducted before Administrative Law Judge Mary Li Creasy, in

67Tallahassee , Florida, on May 13 , 2014.

73APPEARANCES

74For Petitioner s : Floyd B. Faglie, Esquire

82Staunton and Faglie, P.L.

86189 East Walnut Street

90Monticello, Florida 32344

93For Respondent: Adam James Stallard, Esquire

99Post Office Box 12188

103Tallahassee, Florida 32317 - 2188

108STATEMENT OF THE ISSUE S

113Whether a valid Medicaid lien exists , and, if so, what is

124the amount payable to Respondent pursuant to section 409.910(17),

133Florida Statutes , in satisfa ction of the lien from a settlement

144received by Petitioners from a third - party . 1/

154PRELIMINARY STATEMENT

156On December 6, 2013, Petitioners filed a Petition to

165Determine Amount Payable to the Agency for Health Care

174Administration in Satisfaction of Medic aid Lien. The final

183hearing in this matter was originally scheduled for February 13,

1932014. After a series of unopposed motions for continuance based

203upon Respondent's delay in timely responding to discovery , and

212the unavailability of witnesses and counse l, the final hearing

222was held on May 13, 2014.

228Petit i oners presented the testimony of two fact and expert

239witnesses, Robert Bor r ello, Esquire, and Herman Russomanno,

248Esquire. Petitioners' Exhibits 1 through 24, 26 through 29 ,

257and 32 were admitted int o evidence. Respondent offered no

267witnesses or documentary evidence. The parties filed a Joint

276Pre - hearing Stipulation, and the facts stipulated there in are

287accepted and made a part of the Findings of Fact below. The

299Transcript of the final hearing , con sisting of one volume, was

310filed June 9, 2014, and the parties timely filed proposed orders

321that have been carefully considered by the undersigned in the

331preparation of this Final Order .

337At the request of both parties, official recognition was

346taken of per tinent legal authorities. Unless otherwise noted,

355all statutory references are to Florida Statutes (2013).

363FINDING S OF FACT

3671. Ethan Hunt (Ethan) , was born on January 7, 2003 , and

378died on May 31, 2006, from complications arising from his birth -

390related ca tastrophic neurological injury and severe disabilities.

3982. Petitioners, Elsa and Eric Hunt (the Hunts),

406individually, as parents of Ethan , and as the Co - Personal

417Representatives of the Estate of Ethan Hunt (Estate), brought a

427wrongful death lawsuit agains t the hospital where Ethan was born,

438a physician , and an Advanced Registered Nurse Practitioner

446(ARNP) , to recover their individual damages as the surviving

455parents of Ethan, as well as the individual claim for damages of

467the Estate.

4693. In accordance with the limitation on damages recoverable

478in wrongful death actions contained in section 768.21, Florida

487Statutes, the Hunts' wrongful death lawsuit specifically sought

495the individual damages of each parent for their "mental pain and

506suffering and loss of com panionship" of their deceased son.

516Further, the wrongful death action sought , on behalf of the

526Estate, recovery of "medical and funeral expenses."

5334. Ethan was a Medicaid recipient and a portion of his

544medical care was paid for by Medicaid. Respondent, Agency for

554H ealth Care A dministration ( A HCA), through the Medicaid program ,

566paid $ 315,632.17 in benefits on behalf of Ethan for medical

578benefits related to the alleged negligent medical care received

587by Ethan. Ethan first receive d medical treatments for w hich

598Medicaid was obligated to make payments on June 11, 2003 , and

609AHCA, through the Medicaid program, made its last payment for

619Ethan's medical care on May 29, 2006.

6265. As a condition of Ethan ' s eligibility for Medicaid,

637Ethan 's right to recover from lia ble third - parties medical

649expenses paid by Medicaid was assigned to AHCA . See 42 U.S.C.

661§ 1396a(a)(25)(H) and § 409.910(6)(b), Fla . Stat.

6696 . Pursuant to section 409.910(6)(c), Florida Statutes,

677AHCA's Medicaid l ien attached and was perfected on June 11, 2003,

689when Ethan first received medical care for which Medicaid was

699obligated to make payments. O n May 25, 2005, AHCA recorded in

711the Miami - Dade County public record its Claim of Lien and Notice

724of Assignment and Other Statutory Rights (Lien), Book 23409,

733pages 2856 - 2858. By letter dated May 28, 2008 , to an attorney

746representing the Hunts and the Estate, from AHCAÓs contracted

755vendor , Health Management Systems (HMS ) , AHCA indicated that the

765Medicaid lien was in the amount of $315,632.17.

7747 . On July 11, 2 008, the Hunts, on behalf of themselves and

788Ethan's Estate, submitted to all defendants in the wrongful death

798action, Plain tiffsÓ Proposal f or Settlement t o All Defendants

809(Proposal). The P roposal offered a settlement of $7,250,000.00

820to be allocated as f ollows:

826Elsa Hunt $3,300,000.00 45.5%

832Eric Hunt $3,300,000.00 45.5%

838Estate of Ethan Hunt $650,000.00 9.0%

8458 . The Hunt s ' July 11, 2008 , P roposal was rejected , and a

860mediation of the wrongful death lawsuit was held on Ma y 12, 2009.

8739 . By letter dated May 4, 200 9 , to HMS , the attorney

886representing the Hunts in the wrongful death action notifie d

896AHCA's designated vendor of the May 12, 2009, mediation and

906provided a copy of the notice of mediation. AHCA did not attend

918or p articipate in the mediation.

92410 . A global settlement was reached at the May 12, 2009 ,

936mediation for the total amount of $1,800,000.00 . A s part of the

951mediated settlement, the parties made an allocation of the

960settlement proceeds between individual claims of the surviving

968parents and the individual claim of the E state. This allocation

979was memorialized in the Addendum to Mediation Settlement

987Agreement Allo cation of Settlement (Addendum) . Each parent was

997allocated a total amount of $81 9 ,000.00 "in satisfac tion of their

1010individual claims for mental pain and suffering and loss of

1020companionship." The Estate was allocated a total of $162,000 .00

"1031in satisfaction of its claims for medical expenses and funeral

1041expenses." The parties allocated these amounts in ac cordance

1050with the percentages as presented in the prior Proposal.

105911 . By letter dated May 20, 2009, AHCA received notice that

1071the case settled at the May 12, 2009, mediation and of the intent

1084to issue a dismissal of the defendants in the case.

109412 . On Jun e 9, 2009, the court entered a Final Judgment of

1108Dismissal with Prejudice.

111113 . AHCA took no action to intervene in the wrongful death

1123action or to seek relief from the settlement reached by the

1134parties.

113514 . Upon receipt of the settlement proceeds, the am ount of

1147$315,632.17 was placed into a trust account for the benefit of

1159AHCA pending an administrative determination of AHCA's rights ,

1167and this constitutes "final agency action and notice thereof"

1176for purposes of chapter 120, Florida Statutes, pursuant to

1185s ection 409.910(17).

11881 5 . Pursuant to 42 U.S.C. s ection 1396a(a)(25)(A), (B) ,

1199and (H), s ection 1396k(a), and s ection 1396p(a), AHCA may only

1211assert a lien against, and seek recovery from, the portion of a

1223Medicaid recipientÓs settlement representing the Med icaid

1230recipientÓs compensation for medical expenses paid by Medicaid.

123816. The Hunts requested that AHCA calculate the amount owed

1248in satisfaction of the lien pursuant to the statutory formula set

1259forth in section 409.910(11)(f). 2/ The Hunts requested tha t this

1270calculation be based on the EstateÓs recovery of $162,000 .00 ,

1281minus the Estate's share of attorneys' fees and the EstateÓs

1291$15,559.01 share of the litigation costs (which represents the

1301EstateÓs 9% proportionate share of the gross $172,877.87 in

1311lit igation cost).

13141 7. AHCA refused to calculate the amount payable to AHCA in

1326accordance with s ection 409.910(11)(f), Florida Statutes, and

1334continues to seek payment of its full $315,632.17 L ien from the

1347gross settlement award, including those funds allocate d to the

1357parents for their individual claims.

136218. Pursuant to s ection 409.910(6)(c)9 . , a Medicaid lien

1372exist s for seven years after it is recorded, and the lien may be

1386extended for one additional period of seven years by AHCA

1396recording a Claim of Lien wit hin the 90 - day period p receding the

1411expiration of the original l ien.

141719. In the instant case, AHCA recorded its Lien on May 25,

14292005. By operation of la w, this Lien c eased to exist on May 25,

14442012 ( seven years after it was recorded on May 25, 2005). AHC A

1458did n ot extend the existence of the L ien by again recording it

1472within the 90 - day time period preceding its expiration on May 25,

14852012. A ccordingly, AHCAÓs L ien no longer exists.

149420. In addition to the Lien, AHCA has subrogation and

1504assignment rights to collect third - party benefits for the amount

1515of medical assistance provided by Medicaid. § 409.910(6)(a)

1523and (b), Fla. Stat. Actions to enforce the rights of AHCA must

1535be commenced within five years after the date a cause of action

1547accrues, with the peri od running from the later of the date of

1560discovery by AHCA of the case filed by recipient or his or her

1573legal representative, or of discovery of any judgment, award, or

1583settlement contemplated in the section, or of discovery of facts

1593giving rise to a cause of action. § 409.910(11)(h), Fla. Stat.

160421 . By May 20, 2009, at the latest, AHCA was aware of the

1618settlement between the Hunts and the Estate, with Ethan's

1627physician, ARNP , and the hospital at which he was born. As of

1639the date of the final hearing, May 13, 2014, AHCA had not

1651exercised any subrogation or assignment rights. Accordingly,

1658AHCA's ability to pursue subrogation and assignment rights has

1667expired.

16682 2 . Based on the undersigned's finding that no enforceable

1679Lien exists , and that AHCA's subrogati on and assignment rights

1689are extinguished, as discussed more fully in the Conclusions of

1699Law, there is no need to address any of the other factu al

1712contentions of the parties. 3/

1717CONCLUSIONS OF LAW

172023 . The Division of Administrative Hearings (DOAH) has

1729juri sdiction over the subject matter and the parties in this

1740case, and f inal o rder authority pursuant to sections 120.569,

1751120.57(1), and 409.910(17), Florida Statutes.

175624 . As a condition for receipt of federal Medicaid funds,

1767states are required to seek reim bursement for medical expenses

1777incurred on behalf of beneficiaries who later recover from third -

1788party tortfeasors. See Ark. Dep't of Health & Hum. Servs. v.

1799Ahlborn , 547 U.S. 268 , 276 (2006). To secure reimbursement from

1809liable third parties, the state m ust require a Medicaid recipient

1820to assign to the state his right to recover medical expenses

1831from those third parties. In relevant part, 4 2 U.S.C.

1841s ection 1396a(a)(25) provides:

1845(H) that to the extent that payment has been

1854made under the State Plan for medical

1861assistance in any case where a third party

1869has a legal liability to make payment for

1877such assistance, the State has in effect laws

1885under which, to the extent that payment has

1893been made under the State Plan for medical

1901assistance for health care ite ms or services

1909furnished to an individual, the State is

1916considered to have acquired the rights of

1923such individual to payment by any other party

1931for such health care items or services.

193825 . To comply with this federal mandate , the Florida

1948Legislature enact ed section 409.910 , Florida's Medicaid Third -

1957Party Liability Act . This statute authorizes and requires the

1967State , through AHCA, to be reimbursed for Medicaid funds paid for

1978a recipient' s medical care when that recipient later receives a

1989personal injury ju dgment or settlement from a third party. Smith

2000v. Ag. for Health Care Admin. , 24 So. 3d 590, 590 (Fla. 5th DCA

20142009).

201526 . Section s 409.910(6) (a), (b) , and (c) , Florida Statutes,

2026provide AHCA with three means of recovery for the full amount of

2038medical ass istance paid by Medicaid: subrogation, assignment ,

2046and an automatic lien on any judgment or settlement for the

2057medical assistance provided by Medicaid.

206227. Section 409.910(11) provides:

2066The agency may, as a matter of right, in

2075order to enforce its rights under this

2082section, institute, intervene in, or join any

2089legal or administrative proceeding in its own

2096name in one or more of the following

2104capacities: individually, as subrogee of the

2110recipient, as assignee of the recipient, or

2117as a lien holder of the c ollateral.

2125(emphasis added).

212728 . These recovery rights are not without limitation.

2136Section 409.910 (11)(h) states:

2140Except as otherwise provided in this section,

2147actions to enforce the rights of the agency

2155under this section shall be commenced within

2162fiv e years after the date the cause of action

2172accrues, with the period running from the

2179lat er of the date of discovery by the agency

2189of a case filed by a recipient or his or her

2200legal representative, or of discovery of any

2207judgment, award, or settlement conte mplated

2213in the section, or of discovery of facts

2221giving rise to a cause of action under this

2230section. Nothing in this paragraph affects

2236or preven ts a proceeding to enforce a lie n

2246during the existence of a lien as set forth

2255in subparagraph (6) ( c )9. (empha sis added).

226429 . Section 409.910(6)(c)9 . provides:

2270The lien created by this paragraph is a first

2279lien and superior to liens and charges of any

2288provider, and shall exist for a period of

2296seven years, if recorded, after the date of

2304recording; and shall exist for a period of

2312seven years after the date of attachment, if

2320not recorded. If recorded, the lien may be

2328extended for one additional period of seven

2335years by rerecording the claim of lien within

2343the 90 - day period preceding the expiration of

2352the lien.

235430 . AHCA recorded its Lien on May 25, 2005. The L ien

2367expired seven years later on May 25, 2012 , by operation of law

2379when AHCA failed to timely rerecord it.

238631 . A review of the parties Ó Joint Pre - hearing Stipulation

2399and AHCA's Proposed Final Order indicates that AHCA does not

2409contest that the L ien expired. Rather, AHCA asserts that DOAH

2420lacks jurisdiction to determine anything other than the

2428recoverable amount of the lien from Petitioners' settlement.

243632 . Additionally, AHCA alleges that the expiration of t he

2447L ien is a non - issue because it contends its rights of subrogation

2461and assignment are not affected by the extinguishment of the

2471Lien , and AHCA has no obligation to take affirmative action to

2482enforce these rights.

24853 3 . Th e extent of DOAH's jurisdiction is set forth in

2498section 409.910(17) , which provides:

2502(b) A recipient may contest the amount

2509designated as recovered medical expense

2514damages payable to the agency pursuant to the

2522formula specified in paragraph (11)(f) by

2528filing a petition under chapter 120 w ithin

253621 days after the date of payment of funds to

2546the agency or after the date of placing the

2555full amount of the third - party benefits in

2564the trust account for the benefit of the

2572agency pursuant to paragraph (a). The

2578pe tition shall be filed with the Divi sion of

2588Administrative H earings. For the purposes of

2595chapter 120, the payment of funds to the

2603agency with the placement of the full amount

2611of the third - party benefits in the trust

2620account for the benefit of the agency

2627constitutes final agency action and n otice

2634thereof. Final order authority for the

2640proceedings specified in the subsection rests

2646with the Division of Administrative Hearings.

2652This procedure is the exclusive method for

2659challenging the amount of third - party

2666benefits payable to the agency. In order to

2674successfully challenge the amount payable to

2680the agency, the recipient must prove, by

2687clear and convincing evidence, that a lesser

2694portion of the total recovery should be

2701allocated as reimbursement for past and

2707future medical expenses th a n the amo unt

2716calculated by the agency pursuant to the

2723formula set forth in paragraph (11)(f) or

2730that Medicaid provided a lesser amount of

2737medical assistance than that asserted by the

2744agency.

27453 4 . It is axiomatic that every court has judicial power to

2758hear and dete rmine the question of its own jurisdiction, both as

2770to the parties and as to subject matter , and necessarily does so

2782by proceeding in the cause. State ex. r el. BF Goodrich Co. v .

2796Trammel , 140 Fla. 500 (Fla. 1939); Sun Ins. Co. v . Boyd , 105 So.

28102d 574 (Fla . 1958)(a tribunal always has jurisdiction to

2820determine its own jurisdiction).

28243 5 . Here, AHCA contends that section 409.910(17) provides

2834D O AH the limited jurisdiction to decide how to apply the

2846statutory formula for determining the appropriate amount of

2854r eimbursement AHCA may receive from a settlement with the third -

2866party tortfeasor . AHCA argues that the undersigned has no

2876authority to decide whether any recovery rights exist at all --

2887only the amount of such recovery rights.

28943 6 . This is similar to the arg ument considered and rejected

2907by the Florida Supreme Court in Fl orida Birth - Related

2918Neurological Injury Comp ensation Ass ociatio n v. Fl orid a D iv ision

2932o f A dmin istrative H earings , 948 So. 2d 705 (2007) . The issue in

2948that case was whether an Administrative La w Judge (ALJ), when

2959considering a claim under the Florida Birth - Related Neurological

2969Injury Compensation Act (NICA), section 766.303(2), Florida

2976Statutes (1997), ha d jurisdiction to determine whether or not a

2987healthcare provider complied with the "N otice t o O bstetrical

2998Patients of P articipation in the Plan " as required by

3008section 766.316 , Florida Stat u tes (1997) . 4/

30173 7 . When an infant suffers what may be a birth - related

3031neurological injury, NICA provides that the claimant, usually the

3040infant's parent, must file a claim for compensation under the

3050NICA Plan with the Florida Birth - Related Neurological Injury

3060Compensation Association. The claim is then reviewed by a

3069medical advisory panel which makes a written recommendation as to

3079whether the claim is compensab le under the NICA Plan . After the

3092panel makes its recommendation, the claim is heard and determined

3102in an administrative hearing before an ALJ. The ALJ must

3112consider, but is not bound by, the recommendation of the medical

3123advisory panel.

31253 8 . The 1997 NI CA statute explicitly required the ALJ to

3138make three independent findings based upon all available

3146evidence. First, the ALJ was required to determine whether the

3156claim was a birth - related neurological injury. Second, the ALJ

3167was to determine whether the injury was caused by a participating

3178healthcare provider as defined by the statute. Finally , if the

3188first and second requirements were met, the ALJ was required to

3199determine the amount of the award without any regard for fault.

3210If the ALJ determined that the claim was compensable,

3219compensation under the NICA Plan became the claimant's exclusive

3228remedy. The claimant could not bring or maintain a civil suit in

3240violation of NICA's exclusive remedy provision.

32463 9 . T here wa s a condition precedent to NICA's ex clusivity.

3260Pre - delivery notice of the healthcare provider's participation in

3270the NICA Plan was required to be given as required by the

3282statute. The 1997 statute was silent regarding an ALJ's

3291jurisdiction to determine, as a preliminary matter, whether

3299app ropriate pre - delivery notice was provided.

330740 . In two cases before the Second District Court of

3318Appeal, the parents of injured children alleged , in the

3327administrative proceeding , that the applicable notice ha d not

3336been provided , and , therefore , they could elect to pursue an

3346administrative NICA claim or a medical malpractice action in

3355circuit court , and the ALJ s agreed. The Second District reversed

3366the ALJ s ' orders because it determined that NICA did not

3378expressly give an ALJ jurisdiction to make findings regarding

3387notice. These decisions were in conflict with decisions from the

3397Third, Fourth , and Fifth District Courts of Appeal.

340541 . In resolving the conflict between the district courts,

3415the Supreme Court reasoned :

3420In order to "hear and determine" a cla im,

3429an ALJ must, almost of necessity, decide

3436whether notice was given, because if no

3443notice was given, the exclusivity provision

3449of the statute does not apply. Further, an

3457ALJ has "exclusive jurisdiction" to determine

3463whether a claim is compensable under the NICA

3471Plan . In the absence of notice, the Plan

3480does not apply. Given these provisions, we

3487are led to conclude that an ALJ has

3495jurisdiction to determine whether notice is

3501given. As established law provides, an ALJ

3508must have jurisdiction to determine w hether

3515the ALJ has jurisdiction (citing Sun Ins. Co.

3523v . Boyd , 105 So. 2d 574, 575 (Fla. 1958) ) .

3535Fla. Birth - Related Neurological Injury Comp. Ass'n v. Fla. Div.

3546o f Admin. Hearings , 948 So. 2d 705, 715 (2007).

35564 2 . Similarly, in the instant case, in order t o make a

3570determination regarding the amount of Petitioners' settlement

3577which is recoverable as reimbursement for medical expenses paid

3586by Medicaid, the undersigned must preliminarily determine that in

3595fact, AHCA has any recovery rights pursuant to a lien,

3605subrogation or assignment.

36084 3 . The plain language of section 409.910 (6)(c) 9 . makes

3621clear that a lien must be properly recorded within seven years

3632and thereafter timely renewed in order for AHCA to maintain its

3643recovery rights pursuant to the lien. Furthe r, the plain

3653language of section 409.910(11)(h) requires that actions to

3661enforce the subrogation or assignment rights of AHCA must be

3671initiated within the applicable five - year statute of limitations.

3681In this case, AHCA failed to do either . Accordingly, b y

3693operation of law, no enforceable l ien exists, and AHCA's

3703subrogation and assignment rights are extinguished .

371044 . The undersigned rejects AHCA's argument that its

3719May 25, 2005 , filing of the C laim of L ien and Notice of

3733Assignment and Other S tatutory R igh ts is sufficient, in and of

3746itself, to allow AHCA to receive a determination in this

3756proceeding of the amount of its entitlement to reimbursement from

3766the Petitioners' settlement. AHCA's argument erroneously

3772presumes that assignment and subr ogation rights are somehow self -

3783enforcing or that the May 25, 2005, filing was sufficient

" 3793enforcement " action within the five - year statute of limitations

3803to protect its rights to subrogation and assignment.

381145 . As explained in Cramer v. John Alden Life Ins urance

3823Co. , 763 F. Supp . 2d 1196 (D.C. Mont. 2011), there is a

3836substantive distinction between "asserting" a right of

3843subrogation, which was done by the insurance company d uring the

3854course of pre - litigation correspondence and by sending a "Notice

3865of Subrogation" in Cr amer , and "going so far as to 'enforce' a

3878right of subrogation by initiating a judicial proceeding." Id.

3887at 1211, 1213. The C ourt held that the insurance company did not

3900wrongfully and prematurely "enforce" a right of subrogation in

3909the absence of any ju dicial action whatsoever to enforce its

3920right of subrogation.

39234 6 . Cramer argued that her insurance carrier's

3932correspondence regarding its final lien amount and "Notice of

3941Subrogation" constituted an "enforcement" of the subrogation

3948claim because it prohib ited her counsel from distributing the

3958claimed funds from a third - party tortfeasor until the existence

3969or amount of the claim lien or subrogation claim could be

3980resolved. See Id. a t 1213.

398647 . In rejecting Cramer's argument, the Court held that

3996Cramer's r eading of the word "enforced" is "so broad as to be

4009unreasonable." Id. The Court reasoned that the correspondence

4017simply reflects that the parties were embroiled in a dispute as

4028to whether Cramer had been made whole and whether the insurance

4039company woul d be entitled to subrogate.

404648 . Judicial proceedings, initiated within the applicable

4054statute of limitations, are a necessary prerequisite to

"4062enforcing" a right of subrogation or assignment. To hold

4071otherwise would render the five - year statute of limita tions

4082provision contained in section 409.910(11)(h) meaningless.

4088AHCA's decision to only record the Lien, take no affirmative

4098action to timely rerecorded it , or to "institute, intervene in,

4108or join any legal or administrative proceeding in its own name"

4119r esults in its rights of subrogation and assignment to be

4130extinguished in this case.

4134ORDER

4135Based on the foregoing Findings of Fact and Conclusions of

4145Law, it is DETERMINED that the amount of AHCA's Medicaid lien,

4156subrogation , or assignment rights, payable f rom Petitioners'

4164settlement , is ZERO.

4167DONE AND ORDERED this 2 9 th day of July , 2014 , in

4179Tallahassee, Leon County, Florida.

4183S

4184MARY LI CREASY

4187Administrative Law Judge

4190Division of Administrative Hearings

4194The DeSoto Building

41971 230 Apalachee Parkway

4201Tallahassee, Florida 32399 - 3060

4206(850) 488 - 9675

4210Fax Filing (850) 921 - 6847

4216www.doah.state.fl.us

4217Filed with the Clerk of the

4223Division of Administrative Hearings

4227this 2 9 th day of July , 2014 .

4236ENDNOTE S

42381/ In the Joint Pre - hearing Sti pulation, the parties agreed that

4251this case "involves the determination of the amount payable to

4261AHCA in satisfaction of its Medicaid lien." However, in their

4271p roposed f inal o rders, both parties also addressed whether AHCA

4283has recovery rights against Peti tioners' wrongful death

4291settlement through subrogation or assignment. Accordingly, these

4298arguments are addressed herein.

43022/ Section 409.910(11)(f) provides in part that:

4309Notwithstanding any provision in this

4314section to the contrary, in the event of a n

4324action in tort against a third - party in which

4334the recipient or his or her legal

4341representative is a party which results in

4348the judgment, award, or settlement from a

4355third party, the amount recovered shall be

4362distributed as follows:

43651. After attorney ' s fees and taxable costs

4374as defined by the Florida Rules of Civil

4382Procedure, one - half of the remaining recovery

4390shall be paid to the agency up to the total

4400amount of medical assistance provided by

4406Medicaid.

44072 . The remaining amount of the recovery

4415shall be paid to the recipient.

44213. For purposes of calculating the

4427agency's recovery of medical assistance

4432benefits paid, the fee for services of an

4440attorney retained by the recipient or his or

4448her legal representative shall be calculated

4454at 25% of the judg ment, award, or settlement.

44633/ The testimony and evidence at final hearing primarily

4472addressed the issue of whether the allocation made in the

4482addendum for reimbursement of medical expenses was fair and

4491appropriate. Because the undersigned finds there i s no existing

4501lien, subrogation, or assignment right of AHCA, no findings of

4511fact are made as to the appropriate allocation of the settlement

4522funds.

45234/ NICA was revised by the L egislature in 2003 and 2006 to

4536explicitly provide that the ALJ has exclusive jurisdiction to

4545determine whether appropriate notice was provided to parents

4553regarding whether their medical providers participate in the NICA

4562program. Additional references to the language and obligations

4570of NICA are to the 1997 and 1998 version s in effe ct prior to

4585revision.

4586COPIES FURNISHED:

4588Floyd B. Faglie, Esquire

4592Staunton and Faglie, P.L.

4596189 East Walnut Street

4600Monticello, Florida 32344

4603Adam James Stallard, Esquire

4607Post Office Box 12188

4611Tallahassee, Florida 32317 - 2188

4616Elizabeth Dudek, Secretary

4619Agency for Health Care Administration

46242727 Mahan Drive, Mail Stop 1

4630Tallahassee, Florida 32308

4633Stuart Williams, General Counsel

4637Agency for Health Care Administration

46422727 Mahan Drive, Mail Stop 3

4648Tallahassee, Florida 32308

4651Richard J. Shoop, Agency Cle rk

4657Agency for Health Care Administration

46622727 Mahan Drive, Mail Stop 3

4668Tallahassee, Florida 32308

4671NOTICE OF RIGHT TO JUDICIAL REVIEW

4677A party who is adversely affected by this Final Order is entitled

4689to judicial review pursuant to section 120.68, Flori da Statutes.

4699Review proceedings are governed by the Florida Rules of Appellate

4709Procedure. Such proceedings are commenced by filing the original

4718notice of administrative appeal with the agency clerk of the

4728Division of Administrative Hearings within 30 day s of rendition

4738of the order to be reviewed, and a copy of the notice,

4750accompanied by any filing fees prescribed by law, with the clerk

4761of the District Court of Appeal in the appellate district where

4772the agency maintains its headquarters or where a party re sides or

4784as otherwise provided by law.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 12/01/2016
Proceedings: Transmittal letter from Claudia Llado forwarding the one-volume Transcrpt, along with Exhibits to the agency.
PDF:
Date: 05/13/2016
Proceedings: BY ORDER OF THE COURT: Appeal Dismissed.
PDF:
Date: 02/05/2016
Proceedings: Index, Record, and Certificate of Record sent to the First District Court of Appeal.
PDF:
Date: 02/01/2016
Proceedings: Notice of Delay in Transmitting the Record to the District Court of Appeal.
PDF:
Date: 11/02/2015
Proceedings: Index (of the Record) sent to the parties of record.
PDF:
Date: 11/02/2015
Proceedings: Invoice for the record on appeal mailed.
PDF:
Date: 10/19/2015
Proceedings: (Petitioners') Directions to Clerk filed.
PDF:
Date: 10/16/2015
Proceedings: BY ORDER OF THE COURT: appeal shall not proceed until the order of insolvency is filed or the fee is paid.
PDF:
Date: 10/09/2015
Proceedings: Acknowledgment of New Case, First DCA Case No. 1D15-4618 filed.
PDF:
Date: 10/09/2015
Proceedings: Notice of Appeal filed and Certified copy sent to the First District Court of Appeal this date.
PDF:
Date: 09/10/2015
Proceedings: Second DOAH FO
PDF:
Date: 09/10/2015
Proceedings: Final Order (Second) (hearing held May 13, 2014). CASE CLOSED.
PDF:
Date: 07/10/2015
Proceedings: Mandate
PDF:
Date: 07/10/2015
Proceedings: Mandate filed.
PDF:
Date: 07/10/2015
Proceedings: Opinion filed.
PDF:
Date: 06/24/2015
Proceedings: Opinion
PDF:
Date: 11/25/2014
Proceedings: Letter to J. Wheeler from R. Williams regarding enclosed exhibits on video discs filed.
PDF:
Date: 11/25/2014
Proceedings: Index, Record, and Certificate of Record sent to the First District Court of Appeal.
PDF:
Date: 11/19/2014
Proceedings: Notice of Delay in Transmitting the Record to the First District Court of Appeal.
PDF:
Date: 09/10/2014
Proceedings: Index (of the Record) sent to the parties of record.
PDF:
Date: 09/10/2014
Proceedings: Invoice for the record on appeal mailed.
PDF:
Date: 08/28/2014
Proceedings: Acknowledgment of New Case, First DCA Case No. 1D14-3916 filed.
PDF:
Date: 08/27/2014
Proceedings: Notice of Appeal filed and Certified copy sent to the First District Court of Appeal this date.
PDF:
Date: 07/29/2014
Proceedings: DOAH Final Order
PDF:
Date: 07/29/2014
Proceedings: Final Order (hearing held May 13, 2014). CASE CLOSED.
PDF:
Date: 07/24/2014
Proceedings: Order Granting Respondent`s Second Motion for Official Recognition.
PDF:
Date: 07/23/2014
Proceedings: Respondent's Second Motion for Official Recognition filed.
PDF:
Date: 07/21/2014
Proceedings: Order Granting Petitioners` Motion for Official Recognition.
PDF:
Date: 07/08/2014
Proceedings: Petitioners' Motion for Official Recognition filed.
PDF:
Date: 07/03/2014
Proceedings: Order Granting Respondent`s Motion for Official Recognition.
PDF:
Date: 07/01/2014
Proceedings: Respondent's Motion for Official Recognition filed.
PDF:
Date: 06/30/2014
Proceedings: (Respondent's) Proposed Final Order filed.
PDF:
Date: 06/30/2014
Proceedings: Petitioners' Proposed Recommended Order filed.
PDF:
Date: 06/10/2014
Proceedings: (Petitioner's) Notice of Stipulation Regarding Due Date for Submission of Proposed Recommended Order filed.
Date: 06/09/2014
Proceedings: Transcript (not available for viewing) filed.
Date: 05/13/2014
Proceedings: CASE STATUS: Hearing Held.
PDF:
Date: 05/12/2014
Proceedings: Petitioners' Pre-hearing Memorandum of Law in Support of Petition to Determine Amount Payable to AHCA in Satisfaction of Medicaid Lien filed.
Date: 05/09/2014
Proceedings: CASE STATUS: Status Conference Held.
PDF:
Date: 05/09/2014
Proceedings: (Petitioner's) Request for Status Conference filed.
Date: 05/08/2014
Proceedings: Petitioner's Proposed Exhibits filed (exhibits not available for viewing).
PDF:
Date: 05/07/2014
Proceedings: Notice of Filing Supplement to Proposed Exhibits filed.
PDF:
Date: 05/07/2014
Proceedings: Joint Pre-hearing Stipulation filed.
PDF:
Date: 04/03/2014
Proceedings: Order Granting Continuance and Re-scheduling Hearing by Video Teleconference (hearing set for May 13, 2014; 9:30 a.m.; Miami, FL).
Date: 04/03/2014
Proceedings: Petitioner's Proposed Exhibits filed (exhibits not available for viewing).
Date: 04/02/2014
Proceedings: CASE STATUS: Pre-Hearing Conference Held.
PDF:
Date: 04/02/2014
Proceedings: (Petitioner's) Notice of Filing Proposed Exhibits filed.
PDF:
Date: 04/02/2014
Proceedings: Notice of Calling Expert Witness filed.
PDF:
Date: 03/28/2014
Proceedings: Order on Pending Motions.
PDF:
Date: 03/25/2014
Proceedings: (Petitioners') Motion to Abate Proceedings filed.
PDF:
Date: 03/25/2014
Proceedings: (Petitioner's) Motion to Compel Respondent to Answer Petitioner's Second Set of Interrogatories and First Request for Admissions filed.
PDF:
Date: 03/10/2014
Proceedings: Petitioner's First Request for Admissions to Respondent, Agency for Health Care Administration filed.
PDF:
Date: 03/10/2014
Proceedings: Notice of Petitioner's Second Set of Interrogatories to Respondent Agency for Health Care Administration filed.
PDF:
Date: 02/13/2014
Proceedings: Order Granting Continuance and Re-scheduling Hearing by Video Teleconference (hearing set for April 7, 2014; 9:30 a.m.; Miami, FL).
PDF:
Date: 02/13/2014
Proceedings: Order Granting Motion to Compel.
PDF:
Date: 02/13/2014
Proceedings: (Petitioners') Motion to Compel Response to Petitioners' First Request for Production filed.
PDF:
Date: 02/13/2014
Proceedings: (Petitioners') Unopposed Motion for Continuance of February 28, 2014 Final Hearing filed.
PDF:
Date: 02/10/2014
Proceedings: Order Granting Motion to Compel.
PDF:
Date: 02/05/2014
Proceedings: Order Granting Continuance and Re-scheduling Hearing by Video Teleconference (hearing set for February 28, 2014; 9:00 a.m.; Miami, FL).
PDF:
Date: 02/03/2014
Proceedings: Respondent's Response to Petitioner's First Request for Production of Documents to Respondent Agency for Health Care Administration filed.
PDF:
Date: 02/03/2014
Proceedings: (Petitioner's) Unopposed Motion for Continuance of February 13, 2014 Final Hearing filed.
PDF:
Date: 01/31/2014
Proceedings: (Petitioner's) Motion to Compel Respondent to Answer Petitioner's First Set of Interrogatories filed.
PDF:
Date: 01/27/2014
Proceedings: Order Denying Respondent`s Motion for Protective Order.
PDF:
Date: 01/22/2014
Proceedings: Respondent's Motion for Protective Order filed.
PDF:
Date: 01/16/2014
Proceedings: Order on Motion to Appear by Video Teleconference.
PDF:
Date: 01/16/2014
Proceedings: Amended Notice of Hearing by Video Teleconference (hearing set for February 13, 2014; 9:00 a.m.; Miami and Tallahassee, FL; amended as to video teleconference).
PDF:
Date: 01/14/2014
Proceedings: Motion for Permission to Appear at Final Hearing via Video Teleconference filed.
PDF:
Date: 12/26/2013
Proceedings: Petitioners First Request for Production of Documents and Public Records Request to Respondent Agency for Health Care Administration filed.
PDF:
Date: 12/26/2013
Proceedings: Notice of Petitioners First Interrogatories to Respondent Agency for Health Care Administration filed.
PDF:
Date: 12/17/2013
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 12/17/2013
Proceedings: Notice of Hearing (hearing set for February 13, 2014; 9:00 a.m.; Tallahassee, FL).
PDF:
Date: 12/16/2013
Proceedings: Joint Response to Initial Order filed.
PDF:
Date: 12/06/2013
Proceedings: Letter to Stuart Williams from C. Llado (forwarding copy of petition).
PDF:
Date: 12/06/2013
Proceedings: Initial Order.
PDF:
Date: 12/06/2013
Proceedings: Petition to Determine Amount Payable to Agency for Health Care Administration in Satisfaction of Medicaid Lien filed.

Case Information

Judge:
MARY LI CREASY
Date Filed:
12/06/2013
Date Assignment:
12/06/2013
Last Docket Entry:
12/01/2016
Location:
Miami, Florida
District:
Southern
Agency:
Agency for Health Care Administration
Suffix:
MTR
 

Counsels

Related Florida Statute(s) (10):