17-005454MTR Jared Bruno Ramella vs. Agency For Health Care Administration
 Status: Closed
DOAH Final Order on Thursday, February 15, 2018.


View Dockets  
Summary: Pet. proved by a preponderance of the evidence that $10,324 of the total third-party recovery represents the share of the settlement proceeds fairly attributable to past medical expenditures & that amount is available to satisfy AHCA's Medicaid lien.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8JARED BRUNO RAMELLA,

11Petitioner,

12vs. Case No. 17 - 5454MTR

18AGENCY FOR HEALTH CARE

22ADMINISTRATION,

23Respondent.

24_______________________________/

25FINAL ORDER

27O n November 14 , 2017, Ad ministrative Law Judge Hetal Desai

38of the Division of Administrative Hearings conducted t he final

48hearing in this matter by video teleconference with sites in

58Tallahassee and Tampa, Florida.

62APPEARANCES

63For Petitioner: John W. Staunton, Esquire

69Staunton & Faglie, PL

733000 Gulf to Bay Boulevard

78Clearwater, Florida 33759

81For Respondent: Alexander R. Boler, Esquire

872073 Summit Lake Drive , Suite 300

93Tallahassee, Florida 323 17

97STATEMENT OF THE ISSUE S

102The issue for determination is the amount of money

111Petitioner, Jared Bruno Ramella, must pay to Respondent, Agency

120for Health Care Administration (ÐAHCAÑ or Ðthe AgencyÑ), out of

130his settlement proceeds as reimbursement for past Medicaid

138expenditures pursuant to section 409.910, Florida

144Statutes (2017 ). 1/ More specifically, it must be determined

154whether Petitioner must pay the default amount of the Medicaid

164lien , $121,065 , pursuant to section 409.910(11)(f) ; and , if not,

174what p ortion of his $775,000 settlement proceeds is due to AHCA.

187PRELIMINARY STATEMENT

189On September 29, 2017, Petitioner, a Medicaid recipient,

197filed a ÐPetition to Determine Amount Payable to Agency for

207Health Care Administration in Satisfaction of Medicaid Lie nÑ

216(ÐPetitionÑ) with the Division of Administrative Hearings

223(ÐDOAHÑ). Upon receiving the Petition, DOAH notified the Agency

232of the Petition and assigned it to an Administrative Law Judge

243(ÐALJÑ) .

245The Petition challenged the Agency Ó s Medicaid lien on

255Pet itioner Ó s set tlement and recovery from third parties.

266Pursuant to section 409.910(11)(f) , t he Agency seeks full

275reimbursement of Medicaid expenditures paid on Petitioner Ó s

284behalf with Medicaid funds. The Petition asserts reimbursement

292of a lesser portion of Petitioner Ó s recovery is appropriate

303pursuant to section 409.910(17)(b).

307After proper notice, the ALJ held a telephonic pre - hearing

318conference on November 9, 2017, to determine the scope of the

329hearing and discuss the exhibits and witnesses. During t his

339conference, the parties Ó stipulat ion to a number of facts was

351discussed; these stipulated facts are incorporated below.

358The final hearing was held on November 14, 2017. Petitioner

368offered the testimony of two witnesses: Weldon Earl Brennan,

377Esquire, Petitioner Ó s personal injury attorney and an expert

387witness in valuation of personal injury damages; and Ralph Vi nson

398Barrett, Esquire , who was also accepted as an expert in valuation

409of damages in personal injury cases. Moreover, Petitioner Ó s

419Exhibits 1 through 22 were admitted into evidence without

428objection. The Agency did not offer any witnesses or evidence.

438A T ranscript of the proceeding was filed on December 19,

4492017. The parties were granted an extension to file post - hearing

461submittals. Both par ties filed proposed final orders (ÐPFOÑ) ,

470but Petitioner Ó s submittal was untimely. As the Recommended

480Order had not been finalized and there was no objection to the

492late - filed PFO , both P F Os have been considered.

503FINDING S OF FACT

507Underlying Accident and Injuries

5111. Petitioner, at age 29, was involved in a catastrophic

521motorcycle accident leaving him paralyzed from his waist down,

530and with only limited use of his right arm. On the night of

543November 21, 2014, Petitioner Ó s motorcycle collided with an

553oncom ing vehicle that had turned left in front of Petitioner.

564The driver of the oncoming vehicle (ÐDriverÑ) did not see

574Petitioner riding toward her in traffic and Petitioner was unable

584to stop. Upon impact Petitioner was thrown off his motorcycle

594and landed approximately 64 feet away .

6012. At the scene of the accident, Petitioner had no

611sensation from his mid - abdomen down. Later, it was determined he

623suffered a number of injuries including fractures of several of

633his cervical vertebrae, a broken right leg, severe nerve damage

643in his right arm, and a brain bleed.

6513. Petitioner is permanently paralyzed from the ribs down,

660has no control over his bowel and urinary functions, and suffers

671from chronic depression and an anxiety disorder. The injuries

680have impac ted not only his physical abilities, but have also

691affected his ability to maintain normal family, social and work

701relationships.

7024. Petitioner received extensive medical care for his

710injuries. In total, as of September 2017, Petitioner Ó s unpaid

721past m edical expenses (ÐPMEÑ) related to his injuries totaled

731$159,818, of which $121,065 was provided by Medicaid. 2/ N o

744portion of the PME was incurred for future medical care.

754Petitioner Ó s Sources of Recovery

7605. As a result of the accident, Petitioner filed a claim

771for damages with his mother Ó s insurance policy and received the

783policy limits, $150,000.

7876. Petitioner filed a similar claim against the Driver Ó s

798personal insurance policy and received the policy limits,

806$25,000.

8087. Personally, the Driver had no collectable assets. She

817and her family business, however, maintained a number of

826insurance policies with Auto Owners Insurance Co . (ÐAuto

835OwnersÑ) , with a total coverage limit of $100,000. Petitioner

845made a claim against these policies, but Auto Owners declined to

856tender the policy limits to him.

8628. In 2015, Petitioner filed a lawsuit against the Driver

872in circuit court. Ultimately, Auto Owners settled with

880Petitioner for $600,000. In exchange for the settlement funds,

890Petitioner agreed to dismiss th e lawsuit, and execute a full

901release of the Driver for the accident and Auto Owners for a

913potential bad faith claim.

9179 . In total, Petitioner received $775,000 in gross

927settlement proceeds (ÐGSPÑ) from the following sources:

93425,000 USAA (Driver Ó s perso nal policy)

943150,000 Allstate ( Petitioner Ó s mother Ó s policy)

954100,000 Auto Owners (Driver Ó s self - employment policy)

965500,000 Auto Owners (bad faith settlement)

972$775,000 Gross Settlement Proceeds

97710 . Mr. Brennan testified that even though t he Driver would

989have been found liable had the matter gone to trial, the $100,000

1002policy limit was the best Petitioner could hope to recover even

1013with a favorable jury verdict because the Driver was Ð judgment

1024proof. Ñ Based on Auto Owner Ó s refusal to tende r the policy

1038limits, Petitioner was able to recover $500,000 in settlement

1048proceeds above the policy limits.

105311 . Had Petitioner not pursued litigation, the most

1062Petitioner would be able to recover would be $275,000.

107212 . On September 21, 2017, Petitione r notified AHCA of the

1084Auto Owner Ó s settlement and asked AHCA what amount it would

1096accept in satisfaction of its $121,065 Medicaid lien. AHCA did

1107not reply to Petitioner Ó s inquiry.

11141 3 . Petitioner deposited $121,065 in an interest - bearing

1126account for the benefit of AHCA pending an administrative

1135determination of AHCA Ó s rights by DOAH.

1143Allocation of Past Medica l Expenditures

114914 . The parties stipulated that under the default formula

1159found in section 409.910(11)(f), Petitioner is required to pay

1168the Agenc y the full amount of the $121,065 Medicaid lien from the

1182$775,000 total settlement proceeds.

118715 . The settlement agreement with Auto Owners contained a

1197paragraph titled ÐAllocation of Settlement.Ñ This paragraph

1204stated Petitioner Ó s damages were valued as more than $12 million,

1216and $7,973.71 of the $600,000 was allocated for past medical

1228bills.

1229Allocation of Settlement . Although it is

1236acknowledged that this settlement does not

1242fully compensate Plaintiff for all of the

1249damages he has allegedly suffered, this

1255settlement shall operate as a full and

1262complete Release as to Releasees (as more

1269fully described . . . below) without regard

1277to this settlement only compensating

1282Plaintiff for a fraction of the total

1289monetary value of his alleged damages. The

1296parties agree that Plaintiff Ó s alleged

1303damages have a value in excess of

1310$12,000,000, of which $159,474.11 [ 3/ ]

1320represents Plaintiff Ó s claim for past medical

1328expenses. Given the facts, circumstances, and

1334nature of Plaintiff Ó s alleged injuries and

1342this settlement, the parties have agreed to

1349allocate $7,973.71 of this settlement to

1356Plaintiff Ó s claim for past medical expenses

1364and allocate the remainder of the settlement

1371towards the satisfaction of claims other than

1378past medical expenses. This allocation is a

1385reasonab le and proportionate allocation based

1391on the same ratio this settlement bears to

1399the total monetary value of all Plaintiff Ó s

1408alleged damages.

1410The settlement agreement between Petitioner and Auto Owners was

1419fully executed on September 22, 2017.

142516 . AHCA w as not a party to the settlement agreement or

1438release.

143917 . Although the parties stipulated to a number of facts and

1451figures, they did not stipulate to the total provable damages

1461(ÐTPDÑ). Regardless, Petitioner proved by the preponderance of

1469the evidenc e that TPD was equivalent to $12 million.

147918 . More precisely, Petitioner established through

1486unrebutted evidence and testimony of his trial attorney and his

1496expert witness that personal injury actions can be broken down

1506into the following categories:

1510(A ) past lost wages ;

1515(B) future lost income ;

1519(C) pas t medical amounts billed ;

1525(D) future medical expenses ; and

1530(E) non economic damages such as pain and suffering.

1539This is consistent with terminology used in other administrative

1548proceedings defining TP D as Ðall components of a plaintiff Ó s

1560recoverable damages, such as medical expenses, lost wages, and

1569noneconomic damages ( e.g. , pain and suffering).Ñ See Smathers v.

1579Ag . for Health Care Admin. , Case No. 16 - 3590MTR, 2017 Fla. Div.

1593Adm. Hear. LEXIS 540, at * 7 (Fla. DOAH Sept. 13, 2017).

160519 . According to the testimony, jury awards -- which are one

1617manifestation of a TPD determination -- in similar personal injury

1627cases can be estimated to be approximately 2.85 times the first

1638fo ur categories, or TPD = 2.85 x ( A B C D ) .

165320 . Petitioner proved that his past economic damages

1662(A C) Î - which include the total amount bill ed for medical

1675services and lost income as of the date of the settlement -- were

1688approximately $1,058,159. 4/

169321 . Petitioner also offered into evidence an economi c

1703report projecting future lost income assuming Petitioner Ó s loss

1713of total earning capacity; and a Ðfuture life care planÑ report

1724that projected future medical expenses . Together , these reports

1733establish ed PetitionerÓs future economic d amages (B D) would be

1744conservatively estimated at $3,576,376. The present day value of

1755these future damages would be $3,892,550.

176322 . Based on these figures, Petitioner Ó s TPD can be

1775calculated to be approximately $12 million: TPD = ($1,058,159

1786$3,8 92,550) x 2.85 = $12,151,926.

179623 . Mr. Brennan testified that based on his experience and

1807the research he conducted in connection with filing Petitioner Ó s

1818lawsuit, he believed the total value of the lawsuit was in a

1830range between $12 and $16 million.

183624. Mr. Barrett testified that based on his familiarity

1845with jury trials involving similar injuries, in his expert

1854opinion, a jury verdict would have been between $12 and $18

1865million, noting Ð12 million is certainly a very conservative

1874figure for his pure dam ages.Ñ

188025. Both witnesses also testified the $775,000 settlement

1889amount did not fully compensate Petitioner. There was no dispute

1899at the hearing that the GSP is a fraction of the cost for future

1913medical expenses, and does not begin to cover Petitioner Ó s future

1925loss of earning potential or his non economic damages.

193426. The portion of Petitioner Ó s GSP that can be allocated

1946as PME paid by the Agency remains to be determined. Under a

1958Ðsettlement - to - valueÑ formula , AHCA would recover the same

1969portion of its lien as the portion of GSP in relation to his TPD,

1983or equal to GSP/TPD x (PME). See Smathers , 2017 Fla. Div. Adm.

1995Hear. LEXIS 540, at *8.

200027 . Here, the GSP represented approximately 6.46 percent of

2010the TPD. Applying this percentage to the PME using the

2020Ðsettlement - to - valueÑ formula , the Agency could only recover

2031$ 10,324 . In other words, the amount of settlement funds

2043attributable to medical expenditures can be determined as:

2051$ 775,000 (GSP ) X $ 159,818 (PME )

2062$12,000,000 (TPD)

206628 . In support of this formula , Petitioner submitted -- again

2077without an objection from AHCA -- orders from various Florida

2087circuit courts reducing Medicaid liens by applying this formula.

2096Mr. Barrett Ó s unrebutted testimony corroborated this evidence

2105that the Ð settlement - to - va lue Ñ formula should be applied to

2120Petitioner Ó s PME , noting this method was Ðlogic al, and that is

2133how it is done. That Ó s the trade practice.Ñ

214329 . Given that Petitioner Ó s witnesses were the only

2154witnesses, these witnesses were knowledgeable and credible, a nd

2163there was no contrary testimony or evidence, Petitioner has

2172proved by a preponderance of the evidence that $ 10,324

2183constitutes the portion of the GSP that can fairly be allocated

2194toward Petitioner Ó s PME.

2199CONCLUSIONS OF LAW

220230 . The Division of Administ rative Hearings has jurisdiction

2212over the subject matter and parties in this case pursuant to

2223sections 120.569, 120.57, and 409.910, Florida Statutes, the

2231Medicaid Third - Party Liability Act . Delgado v. Ag. for Health

2243Care Admin. , 43 Fla. L. Weekly D245 , 2 018 Fla. App. LEXIS 1012 , at

2257*11 - 12 (Fla. 1st DCA Jan . 26, 2018) (concluding DOAH has subject

2271matter jurisdiction to resolve dispute s brought under section

2280409.910(17)(b); Ð In his final order, the ALJ initially concluded

2290as a matter of law that DOAH had Ò j urisdiction over the subject

2304matter . . . pursuant to sections 120.569, 120.57(1) and

2314409.910(17), Florida Statutes. Ó The ALJ did not err in reaching

2325that conclusion .Ñ ).

232931 . Medicaid is a joint federal - state program designed to

2341help participating states provide medical treatment for their

2349residents that cannot afford to pay. Moore ex rel. Moore v.

2360Reese , 637 F.3d 1220, 1232 (11th Cir. 2011). Although

2369participation in Medicaid is voluntary, all states take advantage

2378of this funding source for the medica l needs of its citizens.

2390See Ark. Dep Ó t of Health & Human Servs. v. Ahlborn , 547 U.S. 268,

2405275 (2006) (Ð States are not required to participate in Medicaid,

2416but all of them do. The program is a cooperative one; the

2428Federal Government pays between 50% and 83% of the costs the

2439State incurs for patient care, and, in return, the State pays its

2451portion of the costs and complies with certain statutory

2460requirements for making eligibility determinations, collecting

2466and maintaining information, and administering t he program.Ñ);

2474see also Gallardo v. Dudek , 263 F. Supp. 3d 1247, 1250 (N.D. Fla.

24872017) , amended on rehearing , 2017 U.S. Dist. LEXIS 112448 (N.D.

2497Fla. 2017) ; rev. granted , C ase N o. 17 - 13693 (11th Cir. 2017); and

2512see also Estate o f Hernandez v. Ag. for Healt h Care Admin. , 190

2526So. 3d 139, 141 - 142 (Fla. 3d DCA 2016) (describing interplay

2538between Federal and Florida law regarding Medicaid program and

2547lien recovery) .

255032 . In order for the state of Florida to take advantage of

2563Medicaid funds for patient care costs , it must comply with the

2574federal regulations requiring it to recover its expenditures for

2583the medical expenses from third - party sources such as settlement

2594agreements . 42 U.S.C. § 1396a(a)(25)(B); Ahlborn , 547 U.S. at

2604284 - 85. At the same time, the Medica id statute limits a state Ó s

2620right to collect reimbursement of expended funds to only those

2630third - party monies that can be allocated for medical care.

264142 U.S.C. § 1396p(a)(1) ; Ahlborn , 547 U.S. at 285 - 86.

265233. The parties have stipulated : (1) the Agency has the

2663right to recover payment; (2) Petitioner has the opportunity to

2673prove that the portion of the settlement that represents medical

2683expenses is less than the amount due under the default formula ;

2694(3) the Agency can only seek recovery from that portio n of the

2707settlement that represents PME ; and (4) Petitioner Ó s burden of

2718proof is the Ðpreponderance of the evidenceÑ standard. What

2727remains to be determined is whether Petitioner proved that less

2737than $121,065 of the $775,000 represents the PME ; and , if s o, what

2752portion of the $775,000 can be allocated for the PME .

276434 . T he L egislature set forth a Ðdefault formula Ñ to

2777determine the amount the Agency may recover for past Medicaid

2787payments from a judgment, award, o r settlement from a third - party.

2800S ection 409.910(11)(f) establishes the Agency Ó s default recovery

2810amount for a Medicaid lien is limited to one - half of the total

2824award, after deducting attorney Ó s fees of 25 percent of the

2836recovery and all taxable costs, up to, but not to exceed, the

2848total amount a ctually paid by Medicaid on the recipient Ó s behalf.

2861Here, the parties stipulated that under this statutory formula,

2870the Agency would be entitled to its full lien amount of $121,065.

288335 . The statute, however, provides Medicaid r ecipients with

2893a method fo r challenging this default amount by initiating an

2904administrative proceeding through DOAH. Section 409.910(17)(b)

2910provides the procedure by which a Medicaid recipient may contest

2920the amount designated as recovered medical expenses payable under

2929section 40 9.910(11)(f). Due to recent federal and state court

2939decision s striking down portions of section 409.910(17)(b) , this

2948section currently is interpreted as follows:

2954This procedure is the exclusive method for

2961challenging the amount of third - party benefits

2969pay able to the agency. In order to

2977successfully challenge the amount payable to

2983the agency, the recipient must prove, by

2990[ a preponderance of the evidence ] clear and

2999convincing evidence , that a lesser portion of

3006the total recovery should be allocated as

3013reim bursement for past and future medical

3020expenses than the amount calculated by the

3027agency pursuant to the formula set forth in

3035paragraph (11)(f) or that Medicaid provided a

3042lesser amount of medical assistance than that

3049asserted by the agency. ( s trikethrough and

3057underline added) .

3060See Gallardo , 263 F. Supp. 3d at 1260 (holding Florida Ó s Ð clear

3074and convincing Ñ burden in section 409.910(17)(b) is preempted by

3084federal law) ; Museguez v. Ag. for Health Care Admin . , Case

3095No. 16 - 7379MTR, 2017 Fla. Div. Adm. Hear. L EXIS 561 , *36 - 37 (Fla.

3111DOAH Sept. 19, 2017) (explaining the default burden of proof after

3122Gallardo pursuant to section 120.57(1)(j) is preponderance of the

3131evidence); Lamendola v. Ag. for Health Care Admin. , Case

3140No. 17 - 3908MTR, 2018 Fla. Div. Adm. Hear. LEXIS 6, *14 - 15 ( Fla.

3156DOAH Jan. 5, 2018) (ÐNotwithstanding the language of section

3165409.910(17)(b), because of rulings in Gallardo . . . PetitionerÓs

3175burden in this case is a preponderance of the evidence .Ñ) . See

3188also Gallardo , 263 F. Supp. 3d at 1253 (Ð Ga llardo contends that

3201§ 409.910 conflicts with federal law and is therefore preempted to

3212the extent that it allows AHCA to satisfy its lien from a Medicaid

3225reci pientÓ s recovery for future medical expenses. This Court

3235agrees. Ñ); Willoughby v. Ag. for Healt h Care Admin. , 212 So. 3d

3248516, 518 ( Fla. 2d DCA 2017) (holding third - party proceeds

3260representing future medical expenses cannot be attached for

3268purposes of Medicaid lien ) , vol untarily dismissed Case No. SC17 -

3280660 (Fla. S. Ct. Sept. 13, 2017) ; Lamendola , 201 8 Fla. Div. Adm.

3293Hear. LEXIS 6, at * 15) (noting Ð any settlement proceeds attributed

3305to future medical expenses shall not be considered in calculation

3315of AHCAÓs lienÑ) . But see Giraldo v. Ag. for Health Care Admin. ,

3328208 So. 3d 244 (Fla. 1st DCA 2016) (conf licting with Willoughby ,

3340finding AHCA may recover proceeds allocated toward future medical

3349expenses to satisfy Medicaid lien) , rev . granted , Case No. SC17 -

3361297 (Fla. S. Ct. Sept. 6, 2017 ) .

337036 . Here, the Agency has agreed t o the burden of proof and

3384that do es not seek reimbursement from any portion of the

3395settlement for future medical damages. It simply asserts that

3404Petitioner has not met his burden to show Ð that a lesser portion

3417of the total recovery should be allocated as reimbursement for

3427past medical ex penses.Ñ

343137 . Again, the burden wa s on Petitioner as the Medicaid

3443recipient to prove by a preponderance of the evidence that a

3454lesser portion of the total recovery should be allocated as

3464re imbursement for PME than the amount the Agency calculated. The

3475Ð pr eponderance of the evidence Ñ standard is a lower bar than the

3489Ðclear and convincingÑ standard formerly applied and currently

3497stated in section 409.910(17)(b). It is defined as evidence that

3507more likely than not tends to prove a proposition. See Gross v.

3519Lyons , 763 So. 2d 276, 280 n.1 (Fla. 2000). Citing Black Ó s Law

3533Dictionary , the Florida Supreme Court defines Ðpreponderance of

3541the evidenceÑ as follows:

3545Th e greater weight of the evidence, not

3553necessarily established by the greater number

3559of witnesses tes tifying to a fact but by

3568evidence that has the most convincing force;

3575superior evidentiary weight that, though not

3581sufficient to free the mind wholly from all

3589reasonable doubt, is still sufficient to

3595incline a fair and impartial mind to one side

3604of the iss ue rather than the other .

3613S. Fla. Water Mgmt. v. RLI Live Oak, LLC , 139 So. 3d 869, 872 n.1

3628(Fla. 2014) .

363138 . Although it is true the statute provides little guidance

3642as to what standard should be used in determining whether and to

3654what extent a Medicaid recipient can satisfy the Ðshould be

3664allocatedÑ requirement, here Petitioner has proven that to allow

3673the Agency to recover the entire default amount would not be fair

3685or reasonable. See Smathers 2017 Fla. Div. Adm. Hear LEXIS 540,

3696at *16 n.7.

369939 . It sho uld be noted that Petitioner Ó s settlement

3711agreement in and of itself cannot establish the allocation to be

3722used in determining what portion of the settlement proceeds can be

3733allocated for PME . Sec t ion 409.9 1 0 (13) provides that a settlement

3748agreement canno t i mpair a Medicaid lien:

3756No action of the recipient shall prejudice the

3764rights of the agency under this section.

3771No . . . Ð settlement agreement, Ñ entered into

3781or consented to by the recipient or his or her

3791legal representative shall impair the agency Ó s

3799rights.

3800See also Deyam paret v. Ag. for Health Care Adm in . , Case No. 17 -

38164560MTR, 2018 Fla. Div. Adm. Hear. LEXIS 2, *16 - 17 ( Fla. DOAH

3830Jan. 3, 2018). Here, the numbers in the settlement a greement are

3842not correct, nor were they agreed to by AHCA.

385140 . Rega rdless of the explicit language in the settlement

3862agreement, all of the testimony and other evidence offered by

3872Petitioner proved that the Ð settlement - to - value Ñ formula was an

3886appropriate method to determin e what portion of the allocation was

3897attributable to PME .

390141. Petitioner also asserts that the $ 10,324 amo unt that

3913results from using the Ðsettlement - to - valueÑ formula should be

3925further reduced to reflect the percentage that the Medicaid

3934expenditure ($121,065) makes up the total PME ($159,818) , which i s

3947approximately 7 6 percent. This formula would make only $7,8 46

3959available to AHCA for satisfaction of the Medicaid lien. There is

3970no authority for such a red uction. Se ction 409.910(17)(b)

3980explicitly allows only one method for a Medicaid recipient to

3990cha llenge the default amount : by establish i ng Ð that a lesser

4004portion of the total recovery should be allocated as reimbursement

4014for past [] medical expenses .Ñ The statute does not use the term

4027Ð past Medicaid expenditures . Ñ

403342 . Although t he Agency did not have the burden of proof, it

4047could have put on testimony or evidence that brought into question

4058Petitioner Ó s underlying propositions relating to the TPD, or that

4069another method should be used to calculate what portion of the

4080proceeds are attributable to PM E and should be available to AHCA .

4093It chose not to do so. There was nothing in the record

4105contradicting the testimony and evidence put on by Petitioner that

4115a Ð settlement - to - value Ñ ratio of GSP to PME constitutes a fair,

4131reasonable and accurate share of the total settlement available

4140for recovery on the Medicaid lien.

414643 . Petitioner p rove d by a preponderance of the evidence,

4158$ 10,324 represents th e amount of the GSP that can be fairly

4172attributable to PME and are available to the Agency for repayment

4183on i ts Medicaid lien.

4188ORDER

4189Based on the foregoing Findings of Fact and Conclusions of

4199Law, it is hereby

4203ORDERED that the Agency for Health Care Administration may

4212recover $ 10,324 from Petitioner Ó s settlement proceeds at issue in

4225this matter in satisfaction o f its Medicaid lien.

4234DONE AND ORDERED this 15 th day of February , 2018 , in

4245Tallahassee, Leon County, Florida.

4249S

4250HETAL DESAI

4252Administrative Law Judge

4255Division of Administrative Hearings

4259The DeSoto Building

42621230 Apalachee P arkway

4266Tallahassee, Florida 32399 - 3060

4271(850) 488 - 9675

4275Fax Filing (850) 921 - 6847

4281www.doah.state.fl.us

4282Filed with the Clerk of the

4288Division of Administrative Hearings

4292this 1 5 th day of February , 2018 .

4301ENDNOTE S

43031/ Unless referenced otherwise, all citatio ns to state and

4313federal statutes , rules and regulations are to the 2017 versions

4323which were effect at the time of Petitioner Ó s settlement

4334agreement . See Cabrera v. Ag. f or Health Care Admin. , Case

4346No. 17 - 4557MTR, 2018 Fla. Div. Adm. Hear. LEXIS 43, n.1 ( Fla.

4360DOAH Jan. 23, 2018) (citing Suarez v. Port Charlotte HMA , 171 So.

43723d 740 (Fla. 2 d DCA 2015) ).

43802/ Although the evidence establishes the total medical costs from

4390the date of the accident to the time of the expert report were

4403approximately $1 million ( see supra , n.4) , the parties stipulated

4413for Medicaid lien purposes the Ðpast medical expensesÑ amount is

4423$159,818 based on the outstanding lien amounts , which are broken

4434down as follows:

4437Lien Amount Source

4440$ 121,065 Medicaid

444415,618 Florida Brain an d Spinal Cord Injury Program

445420,120 Prestige Health

44582,610 AETNA Medicare Prescription Drug Program

4465405 Medicare

4467$ 159,818 PME

4471All monetary figures are rounded to the nearest dollar.

44803/ The discr epancy between the PME ($159,818) and the amount in

4493the Settlement Agreement ($159,474) was due to a subsequent

4503billing adjustment.

45054/ Although this figure seems excessive for these components,

4514AHCA did not dispute the amounts provided by Petitioner for

4524either the past lost wages or total past medical expenses which

4535include both the PME and other expenses not subject to liens .

4547According to the economic report these figures were as follows:

4557$83,327 Loss of Income/ Earning Capacity

4564974,832 Total B illing for me dical expenses as of Sept. 2016

4577$1,058,159 Past Economic Damages as of September 2016

4587COPIES FURNISHED:

4589Alexander R. Boler, Esquire

45932073 Summit Lake Drive , Suite 300

4599Tallahassee, Florida 32317

4602(eServed)

4603Kim Annette Kellum, Esquire

4607Agency for Health Care Administration

46122727 Mahan Drive , Mail Stop 3

4618Tallahassee, Florida 32308

4621(eServed)

4622John W. Staunton, Esquire

4626Staunton & Faglie, PL

46303000 Gulf to Bay Boulevard

4635Clearwater, Florida 33759

4638(eServed)

4639Richard J. Shoop, Agency Clerk

4644Agency for Health Care Administration

46492727 Mahan Drive, Mail Stop 3

4655Tallahassee, Florida 32308

4658(eServed)

4659Stefan Grow, General Counsel

4663Agency for Health Care Administration

46682727 Mahan Drive, Mail Stop 3

4674Tallahassee, Florida 32308

4677(eServed)

4678Justin Senior, Secretary

4681Agency for Health Care Administration

46862727 Mahan Drive, Mail Stop 1

4692Tallahassee, Florida 32308

4695(eServed)

4696Thomas M. Hoeler, Esquire

4700Agency for Health Care Administration

47052727 Mahan Drive, Mail Stop 3

4711Tallahassee, Florida 32308

4714(eServed)

4715NOTICE OF RIGH T TO JUDICIAL REVIEW

4722A party who is adversely affected by this Final Order is entitled

4734to judicial review pursuant to section 120.68, Florida Statutes.

4743Review proceedings are governed by the Florida Rules of Appellate

4753Procedure. Such proceedings are com menced by filing the original

4763notice of administrative appeal with the agency clerk of the

4773Division of Administrative Hearings within 30 days of rendition

4782of the order to be reviewed, and a copy of the notice,

4794accompanied by any filing fees prescribed by l aw, with the clerk

4806of the District Court of Appeal in the appellate district where

4817the agency maintains its headquarters or where a party resides or

4828as otherwise provided by law.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 10/31/2018
Proceedings: Transmittal letter from Claudia Llado forwarding records to the agency.
PDF:
Date: 10/31/2018
Proceedings: Transmittal letter from Claudia Llado forwarding Petitioner's Exhibits numbered 1-22, to Petitioner.
PDF:
Date: 02/15/2018
Proceedings: DOAH Final Order
PDF:
Date: 02/15/2018
Proceedings: Final Order (hearing held November 14, 2017). CASE CLOSED.
PDF:
Date: 01/19/2018
Proceedings: Petitioner's Proposed Final Order filed.
PDF:
Date: 01/18/2018
Proceedings: Respondent's Proposed Final Order filed.
Date: 01/05/2018
Proceedings: Notice of Filing Redacted Exhibit 19 filed (exhibits not available for viewing).
PDF:
Date: 12/21/2017
Proceedings: Order Granting Extension of Time.
PDF:
Date: 12/20/2017
Proceedings: Joint Motion for Extension of Time to File Proposed Final Orders filed.
PDF:
Date: 12/20/2017
Proceedings: Notice of Filing Transcript.
Date: 12/19/2017
Proceedings: Transcript of Proceedings (not available for viewing) filed.
Date: 11/14/2017
Proceedings: CASE STATUS: Hearing Held.
Date: 11/09/2017
Proceedings: CASE STATUS: Pre-Hearing Conference Held.
PDF:
Date: 11/08/2017
Proceedings: Joint Pre-hearing Stipulation ; Hearing November 14, 2017 at 9:30 AM filed.
Date: 11/08/2017
Proceedings: Petitioner's Proposed Exhibits filed (exhibits not available for viewing).
PDF:
Date: 10/26/2017
Proceedings: Notice of Calling Expert Witness filed.
PDF:
Date: 10/19/2017
Proceedings: Notice of Telephonic Pre-hearing Conference (set for November 9, 2017; 9:30 a.m.).
PDF:
Date: 10/19/2017
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 10/19/2017
Proceedings: Notice of Hearing by Video Teleconference (hearing set for November 14, 2017; 9:30 a.m.; Tampa and Tallahassee, FL).
PDF:
Date: 10/16/2017
Proceedings: Response to Initial Order filed.
PDF:
Date: 10/02/2017
Proceedings: Initial Order.
PDF:
Date: 09/29/2017
Proceedings: Letter to General Counsel from C. Llado (forwarding copy of petition).
PDF:
Date: 09/29/2017
Proceedings: Petition to Determine Amount Payable to Agency for Health Care Administration in Satisfaction of Medicaid Lien filed.

Case Information

Judge:
HETAL DESAI
Date Filed:
09/29/2017
Date Assignment:
10/19/2017
Last Docket Entry:
10/31/2018
Location:
Tampa, Florida
District:
Middle
Agency:
Agency for Health Care Administration
Suffix:
MTR
 

Counsels

Related Florida Statute(s) (4):