13-004951MTR
Glenn Allen Holland vs.
Agency For Health Care Administration
Status: Closed
DOAH Final Order on Friday, May 2, 2014.
DOAH Final Order on Friday, May 2, 2014.
1STATE OF FLORIDA
4DIVISION OF ADMINISTRATIVE HEARINGS
8GLENN ALLEN HOLLAND,
11Petitioner,
12vs. Case No. 13 - 4951MTR
18AGENCY FOR HEALTH CARE
22ADMINISTRATION,
23Respondent.
24_______________________________/
25FINAL ORDER
27Pursuant to notice, a final hearing was held in this matter
38on February 27, 2014, in Tallahassee, before W. David Watkins,
48the assigned administrative law judge of the Florida Division of
58Administrative Hearings (DOAH) .
62APPEARANCES
63For Petitioner: Richard Lantinberg, Esq uire
69The Wilner Firm
72444 E ast Duval Street
77Jacksonville, F lorida 32202
81For Respondent: Adam Stallard, Esquire
86Xerox Recovery Services, Inc.
902316 Killearn Center B oulevard
95Tallahassee, F lorida 32309
99STATEMENT OF THE ISSUE
103The issue in this case is the amount of Petitioner Ó s
115personal injury settlement required to be paid to the Agency for
126Health Care Administration (AHCA) to satisfy its
133Medicaid reimbursement cl aim under section 409.910, Florida
141Statutes. 1 /
144PRELIMINARY STATEMENT
146On December 20, 2013, Petitioner filed with DOAH a Petition
156for Equitable Apportionment of Personal Injury Settl ement to
165Satisfy Medicaid Lien (Petition) pursuant to section
172409.910(17)( b), Florida Statutes. Thereafter, the matter was
180assigned to the undersigned administrative law judge to conduct
189a formal administrative hearing and enter a final order. The
199matter was set for hearing on February 27, 2014, and prior to
211hearing the partie s filed a Joint Prehearing Stipulation, as
221well as a supplemental stipulation.
226The hearing proceeded as scheduled, with the Petitioner
234calling one witness, Christopher Shakib, Esquire. At
241PetitionerÓs request, several legal authorities were officially
248re cognized. Respondent called no witnesses and offered no
257documentary evidence.
259The T ranscript of the hearing was filed with DOAH on
270March 27, 2014, and both parties tim ely filed P roposed F inal
283O rders 2 / which have been carefully considered in the preparatio n
296of this Final Order.
300On April 14, 2014, Respondent filed a Motion for Official
310Recognition of the Final Order in Debra L. Savasuk v. Agency for
322Health Care Administration , Case No. 13 - 4130MTR (Fla. DOAH Jan.
33329, 2014). Petitioner did not file a res ponse in opposition to
345the motion. Accordingly, the motion is granted and the
354undersigned has considered the cited Final Order.
361FINDINGS OF FACT
364Based on the evidence adduced at hearing, and the record as
375a whole, the following findings of fact are made:
384Background
3851 . On April 9, 2009, Petitioner, Glenn Holland, came into
396contact with an energized overhead electric power li ne owned by
407the local utility company . At the t ime of the incident,
419Mr. Holland was working as a professional tree trimmer. As a
430re sult of his contact with the wire, he was shocked, lost his
443balance and grip and fell approximately 30 feet to the ground ,
454and sustained catastrophic bodily injuries which render ed him a
464wheelchair - bound paraplegic.
4682 . PetitionerÓs emergency and other med ical expenses were
478paid by Medicaid . The parties stipulated that Medicaid has paid
489a total of $219,908 to treat Petitioner for his injuries.
5003 . Petitioner commenced a civil action against the utility
510company , alleging negligence in the maintenance of th e power
520line and adjacent pole and structures . The utility company
530defended, claiming comparative negligence on the part of
538Mr. Holland. Ultimately , Petitioner settled the lawsuit for
546$500,000. The costs incurred by Petitioner in the underlying
556action w ere stipulated to be $ 65,183.49. Thereafter, AHCA ,
567pursuant to the formula set forth at section 409.910(11)(f) ,
576Florida Statutes, asserted an entitlement to be paid $154,908.25
586from the proceeds of the $500,000 settlement.
5944 . Petitioner objected to the AgencyÓs demand for
603$154,908.25 and timely commenced this action.
610Evidence Relating to Damages
6145 . On February 24, 2014, the parties filed with DOAH a
626document entitled ÐStipulation #1 . Ñ Through the document, the
636parties stipulated to the following:
6411. T he Petitioner, had the underlying
648matter gone to trial, would have presented
655and sought to prove - up the damage figures
664that appear on page 10 of 10 of Dr. J. Rody
675BorgÓs report as Mr. Glenn Holland, III's
682economic damages. These figures appear on
688page 3 of the PetitionerÓs Petition in the
696instant case at the Division of
702Administrative Hearings.
7042. The figures in Dr. Borg's Report were
712calculated by Rody Borg, Ph.D., in
718consultation with the life care report of
725Dr. Craig Lichtblau, MD.
7293. T he Responde nt agree s to not object to
740testimony from Petitioner's expert witnesses
745(i.e. Chris Shakib) at final hearing
751regarding the economic damages figures
756contained in Dr. Borg's report, including,
762by way of example , that Dr. Borg opined that
771the amount of lost p ast earnings was
779$297,741; future earnings lost were
785$1,139,070, that lost benefits were $113,907
794and the low present value amount of future
802life care expenses total $4,656,614, for a
811total calculated economic loss (assuming low
817estimated figures) of $6,20 7,333.
8244. Petitioner stipulates that he will not
831seek to admit into evidence Dr. BorgÓs
838report nor the Dr. Lichblau report.
8446 . Page 3 of the Petition referenced in the first
855stipulation above sets forth estimated (past) and projected
863(future) economic damages suffered by Petitioner, as follows:
8718. At hearing on this matter, plaintiff
878will submit proof of:
882i. t he amount of MedicaidÓs lien
889$219,108.80 Ï by reference to
895MedicaidÓs lien demand amount.
899ii. Mr. HollandÓs total injuries,
904medical and otherwi se, by reference
910to Craig H. Lichtblau, M.D.Ós life
916care plan pertai n in g to medical
924damages and a summary of medical
930bills.
931iii. The present dollar value of
937Mr. HollandÓs injuries by reference
942to Dr. BorgÓs expert report. Total
948future medical damages, t hose not
954paid by AHCA exceed $4.65 million
960on a present value basis. ( See
967e.g. table below from Dr. BorgÓs
973Economic Damages Report.)
976LIFE CARE PLAN TOTALS
980LOW MID HIGH
983Actual Future Expected $16,708,080.52 $19,121,210.31 $21,534 ,340.10
995Present Value $4,656,614.47 $5,388,683.20 $6,120,751.93
1006ECONOMIC DAMAGES SUMMARY
1009Glenn Holland III
1012OVERALL LOSS TOTALS
1015LOW MID HIGH
1018Past Earnings $297,741.27 $297,741.27 $297,741.27
1026Future Earnings $1,139,070.35 $1,518,760.47 $1,898,450.59
1037Future Benefits $ 113,907.04 $227,814.07 $379,690.12
1046Future Life Care $4,656,614.47 $5,388,683.20 $6,120,751.93
1058OVERALL TOTALS $6,207,333.14 $7,432,999.02 $8,696,633.91
10697 . Dr. Craig Lichtblau is a physiatrist (a physician
1079specializing in physical medicine) retained by Mr. Holland in
1088the underlying action to evaluate his condition and to render an
1099opinion re garding the future care and treatment need s of
1110Mr. Holland as a result of injuries. Dr . Lichtblau prepared a
1122report of his findings and projections, referred to as t he Life
1134Care Plan.
11368 . Rody Borg , Ph.D., is an economist and professor at
1147Jacksonville University . He was retained by Petitioner to
1156evaluate the Life Care Plan and to calculate what it would cost
1168to provide the services outl ined in the plan. Dr. Borg pre pared
1181a n ÐEconomic Damages ReportÑ that reduc ed to present value the
1193cost of future medical expenses and other damages sustained by
1203Mr. Holland , as outlined by Dr. Lichtblau.
12109 . Christopher Shakib, Esq u ire , was called as Petitioner Ós
1222only witness . Mr. Sh akib has practiced law for more than 20
1235years , and has experience in personal injury, civil trial , and
1245catastrophic injury cases. Prior to testifying, Mr. Shakib
1253reviewed the pleadings in the underlying tort action, discovery,
1262deposition testimony , and th e expert reports prepared by
1271Dr. Lichtblau and Dr. Borg .
127710 . Mr. Shakib first discussed the economic damages that
1287Petitioner has, and will, continue to suffer as a result of the
1299accident. Those categories of economic losses include past
1307earnings, future earnings, future benefits, and future life care
1316(medical) expenses .
131911 . Consistent with the figures appearing on page 3 of the
1331Petition, Mr. Shakib testified that in his opinion, the amount
1341of economic damages sustained by Mr. Holland ranged in present
1351va lue, from a low of approximately $6. 2 million to a high of
1365approximately $8.7 million. Subsumed within these projections
1372were projected future medical expenses ranging from a low of
1382approximately $4.6 million to a high of approximately $6.1
1391million.
139212 . Mr. Shakib further opined that in addition to economic
1403losses, Petitioner has, and will, suffer non - economic losses.
1413These include pain and suffering, loss of enjoyment of life,
1423inconvenience, and mental anguish. In his opinion, the non -
1433economic damages sustained by Mr. Holland would range from $8. 7
1444million to $20 million.
144813 . Mr. Shakib explained the approach he followed to come
1459up with his projection of non - economic losses, as follows:
1470A. Right. There are different ways to
1477do it. Some people will amortize it and
1485come up with a daily rate for pain and
1494suffering. And, you know, in my opinion
1501sometimes that ends up making the numbers
1508too high , higher than I think are
1515reasonable. What I do in my practice, and
1523IÓve done this for many years, is wh en
1532trying to evaluate what a case is worth, I
1541will take all of the economic losses and
1549IÓll add one extra component for the
1556medicals in the past that were billed; I
1564wonÓt just use the amount that was paid but
1573I will use the actual amount that was billed
1582to come up with the total economics, as a
1591rule of thumb that I use.
1597And I think it was closer to a million
1606and the amount that was actually billed
1613versus the $219,000 or so that was actually
1622paid. And so IÓll add the difference
1629between the billed amo unt and the paid
1637amount back in, and then I will double the
1646economics to get my low range value of a
1655case like this ; and IÓll triple the
1662economics, and that will give me the high
1670range for what I think the case is worth.
167914 . Although the Medicaid program paid $219 , 108.80 for
1689medical services provided to Petitioner, a total of
1697$1,140,386.80 was billed to Medicaid for PetitionerÓs medical
1707care. The remaining $921,278.00 represented the Ðwrite - offÑ
1717taken by medical services providers.
172215 . Mr. Shakib has ne ver met Mr. Holland, or personally
1734evaluated his physical condition. Mr. Shakib testified that in
1743catastrophic injury cases , he typically interviews the treating
1751physicians, yet there is no evidence in this record that he did
1763so in preparing to render tes timony in this case. Nor did
1775Mr. Shakib offer testimony regarding the actual degrees of pain
1785and suffering, loss of enjoyment of life, inconvenience, and
1794mental anguish that has been suffered , or will be suffered in
1805the future, by Mr. Holland.
181016 . Mr. Sh akib conducted no jury verdict research and did
1822not compare this case to any case tried to verdict.
183217 . Mr. ShakibÓs testimony regarding PetitionerÓs non -
1841economic damages was lacking in detail, and was unpersuasive.
1850The imprecision of Mr. ShakibÓs projec tions was undersc ored by
1861his projected range of non - economic damages, from $8.7 million
1872to $20 million, a swing of more than $11 million.
188218 . According to Mr. Shakib , the total economic and non -
1894economic damages sustained by Mr. Holland were in the range of
1905$15 million to $29 .5 million . 3 / Mr. Shakib opined that
1918Ðregardless of any issues of liability; if 100 percent liability
1928could be proved with no comparative fault and there was someone
1939who could pay these damages, this case is worth between 15
1950million a nd a little less than 30 million, and I think that
1963because of his age at the time that he became a quadriplegic ,
1975that his actual damages are more on the higher side of that than
1988the lower side of that.Ñ
199319 . Mr. ShakibÓs testimony regarding the total damag es
2003suffered by Petitioner is rejected, since the largest component
2012of the total damages estimate are the non - economic damages,
2023which are non - credible.
202820 . Mr. Shakib thereafter calculated the proportion that
2037the amount of past medical expenses ($219,108.8 0) bore to the
2049full value of the case. He calculated the proportion as a range
2061of between 1.46 % 4 / and 0.742% . 5 / In other words, according to
2077Mr. Shakib , the AgencyÓs recovery should be limited to between
20871.46% and 0.742% of the settlement amount. Mr. Sh akib then
2098applied these ratios to the settlement and the amount sought by
2109the Agency . In this regard , he testified , Ð[ M ] y opinion is that
2124the lien recovery by the agency should be between $3700 and
2135$7300, and my opinion would be it should really be more t owards
2148the lower end of that because of the value of the case given the
2162fact that this is a 22 - year - old who becomes a quadriplegic.Ñ
217621 . As noted, Mr. Shakib did not include the projected
2187future medical expenses in his calculation of the proportion
2196that m edical expenses bore to the full value of the case. Had
2209he done so, the following chart illustrates the impact the
2219inclusion of future medical expenses would have on the
2228calculation of the Medicaid lien recovery amount:
2235CA L CULATION OF LIEN RECOVERY AMOUNT USING PETITIONERÓS
2244METHODOLOGY WITH INCLUSION OF FUTURE MEDICAL EXPENSES
2251LOW HIGH
2253PAST MEDICALS PAID $219,108.80 $219,108.80
2260BY AHCA
2262FUTURE MEDICALS $4,656,614.00 $6,120,752.00
2270TOTAL MEDICALS $4,875,722.80 $6,339,860.80
2278TOTAL DAMAGES $15,000,000.00 $29,511,063.33
2286PROPORTION OF 32.505% 21.483%
2290MEDICAL EXPENSES TO
2293TOTAL DAMAGES
2295SETTLEMENT AMOUNT X $500,000 X $500,000
2303LIEN RECOVERY AMOUNT $162,524.09 $107,414.98
2310CONCLUSIONS OF LAW
231322 . DOAH has jurisdiction over the parties and the subject
2324matter of this proceeding , and F inal O rder authority, pursuant
2335to s ection 409. 910(17), Florida Statutes .
234323 . The Florida Legislature has codified a formula for
2353determining the maximum amount that may be recovered by AHCA
2363from the proceeds of a tort action broug ht by a Medicaid
2375recipient. Section 409.910(11)(f), provides:
2379(f) Notwithstanding any provision in this
2385section to the contrary, in the event of an
2394action in tort against a third party in
2402which the recipient or his or her legal
2410representative is a party which results in a
2418judgment, award, or settlement from a third
2425party, the amount recovered shall be
2431distributed as follows:
24341. After attorneyÓs fees and taxable costs
2441as defined by the Florida Rules of Civil
2449Procedure, one - half of the remaining
2456recovery shall be paid to the agency up to
2465the total amount of medical assistance
2471provided by Medicaid.
24742. The remaining amount of the recovery
2481shall be paid to the recipient.
24873. For purposes of calculating the agencyÓs
2494recovery of medical assistance benefits
2499p aid, the fee for services of an attorney
2508retained by the recipient or his or her
2516legal representative shall be calculated at
252225 percent of the judgment, award, or
2529settlement.
25304. Notwithstanding any provision of this
2536section to the contrary, the agency sh all be
2545entitled to all medical coverage benefits up
2552to the total amount of medical assistance
2559provided by Medicaid. For purposes of this
2566paragraph, Ðmedical coverageÑ means any
2571benefits under health insurance, a health
2577maintenance organization, a preferre d
2582provider arrangement, or a prepaid health
2588clinic, and the portion of benefits
2594designated for medical payments under
2599coverage for workersÓ compensation, personal
2604injury protection, and casualty.
260824 . Pursuant to the above formula, AHCA is entitled to
2619pa yment for all medical assistance it provides for a Medicaid
2630recipient who suffers a tort injury, up to 37.5% of the amounts
2642recovered from third parties.
264625 . While the s tate of Florida , after providing Medicaid
2657benefits, may seek reimbursement for Ð such health care items or
2668services, Ñ there are limitations on the s tate Ó s recovery that
2681protect the Medicaid recipient's property interest.
2687Specifically, the federal anti - lien statute at 42 U.S.C.
2697§ 1396p( a )(1) states Ð [n]o lien may be imposed against the
2710prop erty of any individual prior to his death on account of
2722medical assistance paid, Ñ and the federal anti - recovery statute
2733at § 1396p(b)(1) states Ð [n]o adjustment or recovery of any
2744medical assistance correctly paid on behalf of an individual
2753under the State plan may be made. Ñ Pursuant to these federal
2765directives, Florida enacted the Ð Medicaid Third - Party Liability
2775Act Ñ (F TPLA). See § 409.910, Fla. Stat.
278426 . Citing Arkansas Department of Health and Human
2793Services v. Ahlborn , 547 U.S. 268, 126 S. Ct. 1752 (2006) , and
2805Wos v. E.M.A. ex Rel. Johnson , 133 S. Ct. 1391 (2013),
2816Petitioner contends that unless the Florida Statutes are
2824interpreted and applied so as to reduce AHCAÓs Medicaid lien
2834claim in accordance with its theory, those statutes are
2843preempted by fe deral law that prohibits states from imposing a
2854lien against the property of a Medicaid recipient prior to the
2865death of the recipient. Specifically, Petitioner argues that
2873Florida has established an arbitrary sum due to AHCA regardless
2883of the proportion t hat medical expenses paid by AHCA bears to
2895the total damages sustained.
289927 . As an alternative to the formula set forth in section
2911409.910(11)(f), Petitioner urges the application of a formula
2919which compares the amount of past medical expenses (here , th e
2930amount of Medicaid's lien) to the total damages , and then an
2941application of that same proportion to the settlement amount , to
2951determine the amount to be reimbursed to the Agency. As
2961authority for its proposed formula, Petitioner cites Smith v.
2970Agency fo r Health Care Admin istration , 24 So. 3d 590, 590 (Fla.
29835th DCA 2009) ( at n . 1 and dissent at 593 explaining formula to
2998determine ratio of medical expenses to total damages for
3007purposes of complying with Ahlborn ) . Petitioner also cites
3017several Florida circu it court decisions which have applied a
3027past - medical - expense - to - total - damages ratio to calculate the
3042Medicaid lien recovery amount.
304628 . PetitionerÓs argument ignores the fact that the 2013
3056Florida Legislature amended section 409.910 to specifically
3063addres s the concerns voiced by the Court in Ahlborn and Wos .
3076T he Staff Analysis on CS/CS/HB 939 prepared by the Health and
3088Human Services Committee of the Florida House of Representatives
3097on April 12, 2013, clearly indicates that the intended effect of
3108the stat utory changes was to address the U.S. Supreme Court
3119decision in Wos .
3123Section 409.910, F.S. , creates an
3128irrebuttable presumption that the amount
3133that the A H CA is entitled to from a Medicaid
3144recipientÓs judgment, award or settlement in
3150a tort action is the lesser of 37.5% of the
3160total recovery or the total amount of
3167medical assistance paid by Medicaid. This
3173provision is similar to the North Carolina
3180provision recently struck down by the
3186Supreme Court in Wos v. E.M.A. To ensure
3194compliance with federal law, the bill amends
3201this section to create a presumption of
3208accuracy as to the A H CAÓs determination of
3217the reimbursement amount but allows this
3223determination to be rebutted by clear and
3230convincing evidence. The bill establishes
3235the mechanism for these challe nges by
3242providing Medicaid recipients with the right
3248to an administrative hearing at DOAH to
3255contest the amount of AHCAÓs recoupment.
3261The bill establishes Leon County as venue
3268for these hearings and the First District
3275Court of Appeal as venue for any rela ted
3284appeals. The bill also provides that each
3291party is to bear its own attorney fees and
3300costs.
330129 . Effective July 1, 2013, section 409.910(17(b),
3309provides in relevant part :
3314(b) A recipient may contest the amount
3321designated as recovered medical expens e
3327damages payable to the agency pursuant to
3334the formula specified in paragraph (11)(f)
3340by filing a petition under chapter 120
3347within 21 days after the date of payment of
3356funds to the agency or after the date of
3365placing the full amount of the third - party
3374be nefits in the trust account for the
3382benefit of the agency pursuant to paragraph
3389(a). The petition shall be filed with the
3397Division of Administrative Hearings. For
3402purposes of chapter 120, the payment of
3409funds to the agency or the placement of the
3418full a mount of the third - party benefits in
3428the trust account for the benefit of the
3436agency constitutes final agency action and
3442notice thereof. Final order authority for
3448the proceedings specified in this subsection
3454rests with the Division of Administrative
3460Heari ngs. This procedure is the exclusive
3467method for challenging the amount of third -
3475party benefits payable to the agency.
3481(footnote omitted).
348330 . S ection (17)(b) of the 2013 amendment also establishes
3494the evidentiary burden that must be satisfied by a cha llenger to
3506the statutory formula:
3509In order to successfully challenge the
3515amount payable to the agency, the recipient
3522must prove, by clear and convincing
3528evidence, that a lesser portion of the total
3536recovery should be allocated as
3541reimbursement for past and future medical
3547expenses than the amount calculated by the
3554agency pursuant to the formula set forth in
3562paragraph (11)(f) or that Medicaid provided
3568a lesser amount of medical assistance than
3575that asserted by the agency. (footnote
3581omitted).
358231 . None of t he cases cited by Petitioner address ed the
3595newly amended version of s ection 409.910 . Rather, those cases
3606addressed the old version of s ection 409.910, which included no
3617provision or procedure by which a recipient could challenge
3626s ection 409.910(11)(f)Ós d etermination as to the medical expense
3636portion of a recipientÓs settlement. The most recent Florida
3645appellate case cited by Petitioner , Davis v. Roberts , 130 So. 3d
3656264 (Fla. 5 th DCA 2013), makes this perfectly clear . At
3668f o otnote 8 of that decision , the c ourt specifically mentions the
3681new, amended version of section 409.910 . This footnote is
3691prece ded by a lengthy discussion of the flaw in the appelleeÓs
3703position in that case , to wit , AHCA Ós assertion that Medicaid
3714recipients have no right to attempt to r ebut the Medicaid
3725reimbursement determination made by the formula at s ection
3734409.910(11)(f). Id . at 269. The flaw noted by the court in
3746Davis has been remedied by the addition of section
3755409.910(17)(b).
375632 . Pursuant to section 409.910(17)(b), a challen ger must
3766prove Ð by clear and convincing evidence, that a lesser portion
3777of the total recovery should be allocated as reimbursement for
3787past and future medical expenses than the amount calculated by
3797the agency pursuant to the formula . Ñ
380533 . Clear and conv incing evidence is an Ð intermediate
3816standard, Ñ Ð requir[ing] more proof than a 'preponderance of the
3827evidence' but less than 'beyond and to the exclusion of a
3838reasonable doubt.' Ñ In re Graziano , 696 So. 2d 744, 753 (Fla.
38501997). For proof to be considered Ð 'clear and convincing' Ñ
3861T he evidence must be found to be credible;
3870the facts to which the witnesses testify
3877must be distinctly remembered; the testimony
3883must be precise and explicit and the
3890witnesses must be lacking in confusion as to
3898the facts in issue. The evidence must be of
3907such weight that it produces in the mind of
3916the trier of fact a firm belief or
3924conviction, without hesitancy, as to the
3930truth of the allegations sought to be
3937established.
3938In re Davey , 645 So. 2d 398, 404 (Fla. 1994) (quoting, with
3950approval, from Slomowitz v. Walker , 429 So. 2d 797, 800 (Fla.
39614th DCA 1983)); see also In re Adoption of Baby E.A.W. , 658 So.
39742d 961, 967 (Fla. 1995) ( Ð The evidence [in order to be clear and
3989convincing] must be sufficient to convince the trier of fact
3999wit hout hesitancy. Ñ ). Ð Although this standard of proof may be
4012met where the evidence is in conflict, . . . it seems to
4025preclude evidence that is ambiguous. Ñ Westinghouse Electric
4033Corp. v. Shuler Bros. , 590 So. 2d 986, 989 (Fla. 1st DCA 1991).
4046In this insta nce, Petitioner failed to carry its burden of
4057proof.
405834 . At the outset, the undersigned notes that the
4068projections of non - economic damages (which were factored into
4078total damages for purposes of applying PetitionerÓs formula) did
4087not rise to the level of Ðclear and convincingÑ evidence. While
4098the undersigned is aware that the valuation methods used by
4108counsel in personal injury and wrongful death cases may vary,
4118and are not an exact science, in this instance , the high and low
4131end valuations provided by P etitionerÓs witness were imprecise,
4140lacked an adequate foundation, and were so widely disparate as
4150to be rendered non - credible.
415635 . The second fatal shortcoming in PetitionerÓs case was
4166the failure to include both past and future medical expenses in
4177the application of its alternative formula. As the chart at
4187Finding of Fact No. 21 illustrates, in a case where the injuries
4199are catastrophic, and are suffered by a young person, future
4209medical expenses will be significant and will radically alter
4218the product of PetitionerÓs formula .
422436 . If the language of a statute Ð is clear and unambiguous
4237and conveys a clear and definite meaning, the statute should be
4248given its plain meaning. Ñ Fla. Hosp. v. Ag . for Health Care
4261Admin. , 823 So. 2d 844, 848 (Fla. 1st DCA 20 02).
427237 . Here, a plain reading of Ð past and future medical
4284expenses Ñ cannot, as Petitioner asserts, limit the term to Ð past
4296medical expenses . Ñ See Debra L. Savasuk v. Ag . for Health Care
4310Admin. , Case No. 13 - 4130MTR (Fla. DOAH Jan. 29, 2014) .
4322Accordingly , the undersigned is obliged to apply the statute as
4332written.
433338 . When future medical expenses are factored into
4342PetitionerÓs formula (and assuming, arguendo, that PetitionerÓs
4349projections of total damages are credible) , the result is not
4359appreciably diff erent than the result rendered when the
4368statutory formula is applied. As stipulated by the parties,
4377application of the section 409.910(11) (f) formula renders a
4386Medicaid lien recovery of $154,908.25, while PetitionerÓs
4394alternative formula renders a lien re covery amount of between
4404$107,414.98 and $162,524.09. Thus, the statutory lien recovery
4414amount falls within the range determined using PetitionerÓs
4422formula, when future medical expenses are included.
442939 . Petitioner has failed t o prove by clear and convin cing
4442evidence that a lesser portion of the total recovery should be
4453allocated as reimbursement for past and future medical expenses
4462than the amount calculated by the agency pursuant to the formula
4473set forth in paragraph (11)(f) , or that Medicaid provided a
4483lesser amount of medical assistance than that asserted by the
4493agency.
4494DISPOSITION
4495Based on the foregoing Findings of Fact and Conclusions of
4505Law, it is DETERMINED that the amount of AHCAÓs Medicaid lien
4516payable from the PetitionerÓs $500,000.00 settlement is fixed at
4526$154,908.25, as claimed by AHCA.
4532DONE AND ORDERED this 2nd day of May , 2014 , in Tallahassee,
4543Leon County, Florida.
4546S
4547W. DAVID WATKINS
4550Administrative Law Judge
4553Division of Administrative Hearings
4557The DeSoto Building
45601230 Apalachee Parkway
4563Tallahassee, Florida 32399 - 3060
4568(850) 488 - 9675
4572Fax Filing (850) 921 - 6847
4578www.doah.state.fl.us
4579Filed with the Clerk of the
4585Division of Administrative Hearings
4589this 2nd day of May , 2014 .
4596ENDNOTES
45971 / Unless otherwise indic ated, all references are to the 2013
4609version of the Florida Statutes.
46142 / While denominated a Proposed Recommended Order, the
4623undersigned considered PetitionerÓs filing to be a Proposed
4631Final Order.
46333 / The exact figure calculated by Mr. Sh akib was $29,5 11,063.33.
46484/ $219,108.80 divided by $15,000,000.00=0.0146 (1.46 percent) .
46595 / $219,108.80 divided by $ 29,511,063.33 =0. 0 0 742 ( 0 . 742
4677percent) .
4679COPIES FURNISHED :
4682Frank Dichio
4684Agency for Health Care Administration
46892727 Mahan Drive , Mail Stop 19
4695Tallahas see, Florida 32308
4699Adam James Stallard, Esquire
4703Xerox Recovery Services Group
47072316 Killearn Center Boulevard
4711Tallahassee, Florida 32309
4714Richard J. Lantinberg, Esquire
4718The Wilner Firm
4721444 East Duval Street
4725Jacksonville, Florida 32202
4728Stuart F. William s, General Counsel
4734Agency for Health Care Administration
47392727 Mahan Drive , Mail Stop 3
4745Tallahassee, Florida 32308
4748Richard J. Shoop, Agency Clerk
4753Agency for Health Care Administration
47582727 Mahan Drive , Mail Stop 3
4764Tallahassee, Florida 32308
4767Elizabeth Du dek, Secretary
4771Agency for Health Care Administration
47762727 Mahan Drive , Mail Stop 1
4782Tallahassee, Florida 32308
4785NOTICE OF RIGHT TO JUDICIAL REVIEW
4791A party who is adversely affected by this Final Order is
4802entitled to judicial review pursuant to s ection 120.68, Florida
4812Statutes. Review proceedings are governed by the Florida Rules
4821of Appellate Procedure. Such proceedings are commenced by
4829filing one copy of a Notice of Appeal with the agency clerk of
4842the Division of Administrative Hearings and a second copy,
4851accompanied by filing fees prescribed by law, with the District
4861Court of Appeal, First District, or with the District Court of
4872Appeal in the appellate district where the party resides. The
4882Notice of Appeal must be filed within 30 days of rendition o f
4895the order to be reviewed.
- Date
- Proceedings
- PDF:
- Date: 11/21/2014
- Proceedings: Transmittal letter from Claudia Llado forwarding the one-volune Transcript to the agency.
- Date: 03/27/2014
- Proceedings: Transcript (not available for viewing) filed.
- Date: 02/27/2014
- Proceedings: CASE STATUS: Hearing Held.
- PDF:
- Date: 02/24/2014
- Proceedings: Petitioner's Memorandum of Law in Support of Equitable Apportionment of Personal Injury Settlement to Satisfy Medicaid Lien filed.
- Date: 02/21/2014
- Proceedings: CASE STATUS: Pre-Hearing Conference Held.
- PDF:
- Date: 02/20/2014
- Proceedings: Petitioner's Notice of Filing Authority in Support of His Petition to Determine Medicaid Lien filed.
- Date: 02/19/2014
- Proceedings: CASE STATUS: Pre-Hearing Conference Held.
- PDF:
- Date: 12/31/2013
- Proceedings: Notice of Hearing (hearing set for February 27, 2014; 9:30 a.m.; Tallahassee, FL).
Case Information
- Judge:
- W. DAVID WATKINS
- Date Filed:
- 12/20/2013
- Date Assignment:
- 12/20/2013
- Last Docket Entry:
- 11/21/2014
- Location:
- Tallahassee, Florida
- District:
- Northern
- Agency:
- Agency for Health Care Administration
- Suffix:
- MTR
Counsels
-
Frank Dichio
Address of Record -
Richard J Lantinberg, Esquire
Address of Record -
Adam James Stallard, Esquire
Address of Record -
Stuart Fraser Williams, General Counsel
Address of Record