13-004951MTR Glenn Allen Holland vs. Agency For Health Care Administration
 Status: Closed
DOAH Final Order on Friday, May 2, 2014.


View Dockets  
Summary: Petitioner did not prove that AHCA should recover less than the amount of its Medicaid lien claim.

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.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 11/21/2014
Proceedings: Transmittal letter from Claudia Llado forwarding the one-volune Transcript to the agency.
PDF:
Date: 05/02/2014
Proceedings: DOAH Final Order
PDF:
Date: 05/02/2014
Proceedings: Final Order (hearing held February 27, 2014). CASE CLOSED.
PDF:
Date: 04/16/2014
Proceedings: (Respondent's) Proposed Final Order filed.
PDF:
Date: 04/14/2014
Proceedings: Respondent's Motion For Official Recognition filed.
PDF:
Date: 04/10/2014
Proceedings: (Petitioner's) Proposed Recommended Order filed.
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.
PDF:
Date: 02/24/2014
Proceedings: (Petitioner's) Stipulation #1 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: 02/17/2014
Proceedings: Joint Pre-Hearing Stipulation filed.
PDF:
Date: 12/31/2013
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 12/31/2013
Proceedings: Notice of Hearing (hearing set for February 27, 2014; 9:30 a.m.; Tallahassee, FL).
PDF:
Date: 12/27/2013
Proceedings: (Respondent's) Response to Initial Order filed.
PDF:
Date: 12/27/2013
Proceedings: Petitioner's Response to Initial Order filed.
PDF:
Date: 12/20/2013
Proceedings: Letter to Stuart Williams from C. Llado (forwarding copy of petition).
PDF:
Date: 12/20/2013
Proceedings: Initial Order.
PDF:
Date: 12/20/2013
Proceedings: Petition for Equitable Apportionment of Personal Injury Settlement to Satisfy Medicaid Lien and Request for Hearing filed.

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

Related Florida Statute(s) (5):