18-005813MTR Grace Provvedi, Deceased, By And Through Timothy Provvedi As Personal Representative Of The Estate Of Grace Provvedi; Timothy Provvedi, As Surviving Spouse Of Grace Provvedi; B.P. Surviving Minor Child Of Grace Provvedi; And Kyle Lima Surviving Child Of Grace Provvedi vs. Agency For Health Care Administration
 Status: Closed
DOAH Final Order on Tuesday, April 9, 2019.


View Dockets  
Summary: Petitioner proved by a prepondersance of the evidence that AHCA's Medicaid lien should be reduced by the same ratio as the settlement is to the value of the claim.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8GRACE PROVVEDI, deceased, by and

13through TIMOTHY PROVVEDI as

17Personal Representative of the

21Estate of GRACE PROVVEDI;

25TIMOTHY PROVVEDI, as surviving

29spouse of GRACE PROVVEDI; B.P. ,

34surviving minor chi ld of GRACE

40PROVVEDI; and KYLE LIMA ,

44surviving child of GRACE

48PROVVEDI,

49Petitioners,

50vs. Case No. 18 - 5813MTR

56AGENCY FOR HEALTH CARE

60ADMINISTRATION,

61Respondent.

62_______________________________/

63FINAL ORDER

65Pursuant to notice, a final hearing in this cause was held

76in Tallahassee , Florida, on January 17, 2019 , before Linzie F.

86Bogan, Administrative Law Judge of the Division of Administrative

95Hearings.

96APPEARANCES

97For Petitioner s : Floyd B. Faglie, Esquire

105Stau nton and Faglie, P.L.

110189 East Walnut Street

114Monticello, Florida 32344

117For Respondent: Alexander R. Boler, Esquire

1232073 Summit Lake Drive , Suite 300

129Tallahassee, Florida 32317

132ST ATEMENT OF THE ISSUE

137What amount from Petitioners Ó settlement proceeds should be

146paid to satisfy Respondent Ó s Medicaid lien under section 409.910,

157Florida Statutes (2018)? 1/

161PRELIMINARY STATEMENT

163On November 2, 2018, Grace Provvedi, deceased, by and

172throug h Timothy Provvedi as personal representative of the Estate

182of Grace Provvedi ; Timothy Provvedi, as surviving spouse of Grace

192Provvedi ; B.P. , as surviving minor child of Grace Provvedi, and

202Kyle Lima , as surviving child of Grace Provvedi (Petitioners),

211fil ed with the Division of Administrative Hearings (DOAH) a

221Petition to Determine Amount Payable to Agency for Health Care

231Administration in Satisfaction of Medicaid Lien. At the final

240hearing , Petitioners offered testimony from John Pate, Esquire.

248The Agen cy for Health Care Administration (Respondent or AHCA)

258did not call any witnesses to testify on its behalf.

268Petitioners Ó Exhibits 1 through 10 were admitted into

277evidence. Respondent did not offer any exhibits into evidence.

286A Transcript of the final he aring was filed with DOAH on

298February 22, 2019. On March 11, 2019, each party filed a

309proposed order, and the same have been considered in the

319preparation of this Final Order.

324FINDING S OF FACT

328A. Stipulated Facts ( near - verbatim)

3351. On February 13, 201 7, Grace Provvedi (Mrs. Provvedi)

345underwent an outpatient surgical procedure. Post - surgery, a

354F entanyl patch was applied to Mrs. Provvedi Ó s body for the

367management of pain. Additionally, she was discharged home with a

377prescription for the oral pain medic ines, Lorazepam and Robaxin.

387Mrs. Provvedi returned for a follow - up doctor Ó s visit on

400February 15, 2017. That same day, February 15, 2017,

409Mrs. Provvedi went into cardiopulmonary arrest at home. She was

419transported to the hospital where she was ultima tely diagnosed

429with anoxic brain injury due to pain medicine overdose.

438Mrs. Provvedi remained in a vegetative state until her death on

449March 24, 2017.

4522. Mrs. Provvedi was survived by her husband Timothy

461Provvedi, their four - year - old child, B.P. and an adult child, Kyle

475Lima.

4763. Mrs. Provvedi Ó s medical care related to her injury was

488paid by Medicaid, and AHCA through the Medicaid program provided

498$54,071.79 in benefits associated with Mrs. Provvedi Ó s injury.

509This $54,071.79 represented the entire claim for past medical

519expenses.

5204. Mrs. Provvedi Ó s funeral bill totaled $11,422.97 and was

532paid by her surviving husband.

5375. Timothy Provvedi was appointed the p ersonal

545r epresentative of the Estate of Grace Provvedi.

5536. Timothy Provvedi , as the p ersonal r epr esentative of the

565Estate of Grace Provvedi , brought a wrongful death claim to

575recover both the individual statutory damages of Mrs. Provvedi Ó s

586surviving spouse and two surviving children, as well as the

596individual statutory damages of the Estate of Grace P rovvedi

606against the doctor and physician Ó s group (Defendants) who

616prescribed the deadly combination of the Fentanyl patch and oral

626pain medication .

6297. Timothy Provvedi , as the p ersonal r epresentative of the

640Estate of Grace Provvedi , on behalf of Mrs. Prov vedi Ó s surviving

653husband and two children, as well as on behalf of the Estate of

666Grace Provvedi, compromised and settled the wrongful death claim

675with the Defendants for the unallocated lump sum amount of

685$225,000.

6878. During the pendency of the wrongful d eath claim, AHCA was

699notified of the action and AHCA asserted a $54,071.79 Medicaid

710lien against the Estate of Grace Provvedi Ó s cause of action and

723settlement of that action.

7279. By letter, the attorney handling the wrongful death claim

737notified AHCA of th e settlement. This letter requested AHCA to

748advise as to the amount AHCA would accept in satisfaction of the

760$54,071.79 Medicaid lien.

76410. AHCA has not filed an action to set aside, void, or

776otherwise dispute the wrongful death settlement.

78211. AHCA has not commenced a civil action to enforce its

793rights under section 409.910.

79712. AHCA, through the Medicaid program, spent $54,071.79 on

807behalf of Mrs. Provvedi, all of which represents expenditures paid

817for Mrs. Provvedi Ó s past medical expenses.

82513. No por tion of the $225,000 settlement represents

835reimbursement for future medical expenses.

84014. The formula at section 409.910(11)(f), as applied to the

850entire $225,000 settlement, requires payment of the full

859$54,071.79 Medicaid lien and AHCA is demanding paym ent of

870$54,071.79 from the $225,000 settlement.

87715. The Petitioners have deposited the full Medicaid lien

886amount in an interest - bearing account for the benefit of AHCA

898pending an administrative determination of AHCA Ó s rights, and this

909constitutes Ð final a gency action Ñ for purposes of chapter 120,

921Florida Statutues, pursuant to section 409.910(17).

927B. Additional Findings of Fact

93216. Mr. Provvedi, as surviving husband, and the two children

942of Mrs. Provvedi, suffered economic and non - economic damages. The

953Estate of Mrs. Provvedi suffered economic damages in the form of

964medical expenses resulting from the Defendant Ó s alleged

973negligence. Mrs. Provvedi Ó s funeral bill was paid by

983Mr. Provvedi. Pursuant to the Florida Wrongful Death Act, burial

993expenses are g enerally charged to the estate, unless, as in the

1005present case, such expenses are paid by a surviving spouse and

1016reimbursement of the same is not sought from the estate.

102617. Mrs. Provvedi, as a condition of eligibility for

1035Medicaid, assigned to AHCA her r ight to recover medical expenses

1046paid by Medicaid from liable third parties.

105318. Petitioners presented the testimony of Mr. John W. Pate,

1063a trial attorney with the law firm of Haygood, Orr & Pearson in

1076Irving, Texas. Mr. Pate has been a trial attorney f or 14 years

1089and he specializes in representing individuals in personal injury,

1098medical malpractice , and wrongful death cases.

110419. Mr. Pate testified that during the last several years,

1114his practice has focused extensively on litigating medical

1122malpracti ce cases involving the wrongful administration of

1130prescription medications, including opioids like Fentanyl,

1136Oxycodone, Hydrocodone , and other drugs which impact an

1144individual Ó s central nervous system (CNS). Such drugs are often

1155referred to as CNS depress ant drugs.

116220. Mr. Pate routinely conducts civil jury trials, and as a

1173consequence thereof, he stays abreast of jury verdicts by

1182reviewing jury verdict reporters and discussing cases with other

1191trial attorneys. Although Mr. Pate is not a member of the Fl orida

1204Bar, he represents injured parties in Florida which necessitates

1213that he stays up - to - date with civil jury verdicts from the State

1228of Florida. Mr. Pate testified that as a routine part of his

1240practice , he makes assessments concerning the value of dam ages

1250suffered by injured parties and credibly explained his process for

1260making such assessments.

126321. Without objection, Mr. Pate was recognized as an expert

1273in the valuation of damages suffered by injured parties.

128222. Mr. Pate served as lead attorney in the litigation

1292against the medical providers who treated Mrs. Provvedi. In his

1302capacity as lead attorney, Mr. Pate reviewed Mrs. Provvedi Ó s

1313medical records, consulted with an anesthesiology and pain

1321management expert in North Carolina, consulted with a plastic

1330surgery expert in Miami, met personally with Mr. Provvedi, and

1340spoke with Mrs. Provvedi Ó s children.

134723. Mr. Pate, in explaining the circumstances that allegedly

1356le d to the death of Mrs. Provvedi, testified that on February 13,

13692017, Mrs. Provved i underwent an outpatient surgical procedure at

1379a plastic surgery center. Soon after the surgery, a Fentanyl

1389patch was applied to Mrs. Provvedi Ó s body for the treatment of

1402pain. Ms. Provvedi was then discharged home with a prescription

1412for Lorazepam and Robaxin, each of which is an oral pain

1423medication.

142424. Mr. Pate testified that the federal Food and Drug

1434Administration (FDA) warns against the use of Fentanyl patches

1443post - surgery, and also warns against the combination of a Fentanyl

1455patch with other C NS depressant drugs , such as Lorazepam and

1466Robaxin. Mr. Pate explained, as to his theory of legal liability

1477against Mrs. Provvedi Ó s medical providers, that over time the

1488prescribed CNS depressants accumulated in Mrs. Provvedi Ó s body

1498which resulted in her being found unresponsive two days after

1508surgery. Mrs. Provvedi was transported by EMS to the hospital,

1518where, upon arrival, the Fentanyl patch was removed.

1526Mrs. Provvedi was diagnosed as having suffered from an acute

1536anoxic brain injury and respiratory failure due to a pain

1546medication overdose. Mrs. Provvedi never regained consc iousness ,

1554and one month later was discharged from the hospital to hospice

1565care where she died on March 24, 2017.

157325. Mr. Pate Ó s undisputed testimony was that his

1583investigation revealed that Mr. and Mrs. Provvedi had a loving and

1594devoted marriage, and that it was emotionally devastating to

1603Mr. Provvedi to watch his wife die over the course of five weeks.

1616Mr. Pate also testified that his investigation revealed that the

1626Provvedi Ó s minor son, B.P. , who was five at the time of

1639Mrs. Provvedi Ó s death, was profoundly affected by the loss of his

1652mother and that Ms. Provvedi Ó s adult son, who lived with the

1665Provvedis prior to and at the time of his mother Ó s passing, was

1679similarly devasta ted by the death of his mo ther .

169026. Mr. Pate credibly testified that based on his training

1700and experience, the wrongf ul death damages recoverable in

1709Mrs. Provvedi Ó s case had a conservative value of between

1720$3,054,071.79 to $5,054,071.79.

172727. According to Mr. Pate Ó s undisputed testimony,

1736Mrs. Provvedi Ó s estate had a claim for damages in the amount of

1750$54,071.79, which is the amount of medical expenses that were

1761paid, and resulted from Mrs. Provvedi Ó s injury and death.

1772Mr. Pate excluded the funeral bil l from the estate Ó s damages

1785because the same bill was paid by Mr. Provvedi, as surviving

1796husband. Mr. Pate also testified that the estate likely did not

1807have a viable claim for net accumulations because Mrs. Provvedi

1817did not work outside of the marital ho me.

182628. Mr. Pate testified that a wrongful death claim was

1836brought against the plastic surgeon that operated on Mrs. Provvedi

1846and the surgical facility where the procedure was performed. The

1856basis of the claim was that the doctor violated the standard of

1868care by prescribing the F entanyl patch to Mrs. Provvedi in clear

1880contravention of the FDA warnings, and it was error to prescribe

1891the other oral pain medicines in conjunction with the F entanyl

1902patch. Mr. Pate testified that he expected the at - fault par ties

1915to dispute causation, but ultimately the main issue was that the

1926alleged at - fault parties had only $250,000 in insurance coverage.

1938Mr. Pate credibly testified that expenses associated with

1946litigating the wrongful death case would be considerable and would

1956significantly erode any likely net recovery. Given these

1964concerns, the decision was made to settle the case pre - suit for

1977$225,000.

197929. Utilizing the conservative value of $3,054,071.79, the

1989$225,000 settlement represe nts a recovery of only 7.36721 4 percent

2001of the value of all damages. Thu s, only 7.367214 percent of the

2014$54,071.79 claim for past medical expenses was recovered in the

2025settlement, or $3,983.58.

202930. Based on the methodology of applying the same ratio the

2040settlement bore to the total m onetary value of all the damages to

2053the e state, $3,983.58 of the settlement represents the estate Ó s

2066compensation for past medical expenses. The allocation of

2074$3,983.58 of the settlement to the estate Ó s claim for past medical

2088expenses is reasonable and rat ional.

209431. Petitioners have proven by a preponderance of the

2103evidence that $3,983.58 represents the portion of the $225,000

2114settlement recovered to compensate the estate for medical expenses

2123necessitated by the alleged negligence of the tortfeasors.

2131CONCL USIONS OF LAW

2135A. Jurisdiction

213732. In Delgado v. Agency for Health Care Admin istration , 43

2148Fla. L. Weekly D245 (Fla. 1st DCA Jan. 26, 2018), the court found

2161that AHCA, by stipulation, and only as to the issue of DOAH Ó s

2175jurisdiction, waived its argument th at only a Ð living Ñ recipient

2187of Medicaid could contest the amount of AHCA Ó s lien under the

22002016 version of section 409.910(17)(b). Nevertheless, the c ourt

2209opined that DOAH did in fact have subject matter jurisdiction to

2220resolve the dispute because the rep resentative of the estate and

2231the decedent Ó s survivors Ð independently had standing to file

2242their petition, irrespective of whether or not they were

2251ultimately found to be Ò recipient[s] Ó for purposes of section

2262409.910(17)(b). Ñ Id . at 11.

226833. Almost a yea r to the day after Delgado was decided, in

2281Ammar Al Batha v. State of Florida, Agency for Health Care

2292Administration , 44 Fla. L. Weekly D236 (Fla. 1st DCA Jan. 14,

23032019), the court, with respect to the 2016 version of the

2314statute, held that while the perso nal representative of the

2324decedent Ó s estate qualifies as a Ð recipient Ñ under section

2336409.910(17)(b), the decedent Ó s survivors do not, and although the

2347ALJ erred in dismissing the personal representative Ó s petition it

2358was not error for the ALJ to dismiss th e survivor Ó s petition

2372challenging the Medicaid lien. In reaching its decision, the

2381court in Al Batha made no mention of its decision in Delgado .

239434. While there appears to be some tension, if not outright

2405conflict, between Delgado and Al Batha as to the question of

2416Ð standing Ñ of a decedent Ó s survivors to challenge a Medicaid lien

2430under the 2016 version of section 409.910(17)(b), it is

2439nevertheless clear that the current version of the statute

2448expressly allows for a challenge by Ð a recipient, or his or her

2461legal representative Ñ in Ð instances where federal law limits the

2472agency to reimbursement from the recovered medical expense

2480damages. Ñ

248235. In Al Batha , the court opined that Ð [e]ven though a

2494person dies, his right to an existing cause of action does not

2506d ie with him . . . [and] [t]herefore, theoretically[,] a deceased

2519person could file a petition to challenge AHCA Ó s lien if he could

2533file a petition[,] [and,] [u]nder Florida law, the proper person

2545to file a cause of action on behalf of a deceased person is the

2559personal representative. Ñ Id. The court went on to opine that

2570Ð [s]ince a personal representative is the person authorized to

2580prosecute a deceased person Ó s claims, the personal representative

2590qualifies as a Ò recipient Ó providing the deceased person

2600qu alifies as a Ò recipient. ÓÑ Id. Succinctly stated, Al Batha

2612makes it clear that the personal representative stands in the

2622proverbial shoes of the decedent and is entitled to the same

2633rights as the decedent when challenging Medicaid Ó s lien.

264336. Although t he dissenting opinion in Al Batha relies on

2654Goheagan v. Perkins , 197 So. 3d 112 (Fla. 4th DCA 2016) . and

2667Estate of He r nandez v. Agency for Health Care Administration , 190

2679So. 3d 139 (Fla. 3d DCA 2016), for the proposition that only a

2692living Medicaid recipi ent, and not, upon death, his or her

2703personal representative, can challenge a Medicaid lien under

2711section 409.910(17)(b), the court Ó s majority did not embrace the

2722rational of its sister courts. The undersigned finds Al Batha

2732more persuasive than Goheagan and Hernandez because the rationale

2741set forth therein gives appropriate consideration to the long -

2751held rights of a decedentÓs personal representative as codified

2760in the Florida Wrongful Death Act.

276637. While it is true that Al Batha , Goheagan and Hernand ez

2778dealt with an earlier version of section 409.910(17)(b), there is

2788no indication that recent changes to Medicaid law now impose

2798restrictions on a recipient Ó s right[s] to challenge a Medicaid

2809lien in a manner different from what was allowed in 2016.

2820Beca use Al Batha recognizes that a decedentÓs personal

2829representative qualifies as a Ðrecipient,Ñ and is therefore able

2839to challenge a Medicaid lien to the same extent as the decedent,

2851had he/she lived, then, ipso facto, Arkansas Department of Health

2861& Human S ervices v. Ahlborn , 547 U.S. 268 (2006), Wos v. E.M.A.

2874ex rel Johnson , 133 S. Ct. 1391 (2013), and their progeny, apply

2886to, and indeed control, in the instant dispute.

289438. In accordance with Al Batha and the express language of

2905section 40 9 .910(17)(b), Tim othy Provvedi, as Personal

2914Representative of the Estate of Grace Provvedi, is a Medicaid

2924Ð recipient Ñ and is therefore authorized to challenge AHCA Ó s

2936Medicaid lien to the same extent as Grace Provvedi, had she

2947lived.

294839. In accordance with Delgado , Timothy Provvedi, as

2956surviving spouse of Grace Provvedi ; B.P. , as minor child of Grace

2967Provvedi ; and Kyle Lima , as surviving child of Grace Provvedi,

2977are proper parties to this action given that it is reasonable to

2989expect that their substantial interests could be affected, either

2998directly or indirectly, by the outcome of the instant proceeding.

3008See Delgado (citing Peace River/Manasota Reg Ó l Water Supply Auth.

3019v. IMC Phosphates Co. , 18 So. 3d 1079 (Fla. 2d DCA 2009)).

30314 0. D OAH has jurisdiction over the subject ma tter and the

3044parties pursuant to sections 120.569, 120.57(1) and 409. 910(17),

3053Florida Statutes .

3056B. The Proper Lien Amount

306141. AHCA is the agency authorized to administer Florida Ó s

3072Medicaid program. § 409.902, Fla. Stat.

307842. The Medicaid program Ð provid e[s] federal financial

3087assistance to States that choose to reimburse certain costs of

3097medical treatment for needy persons. Ñ Harris v. McRae , 448 U.S.

3108297, 301 (1980).

311143. Ð The Medicaid program is a cooperative one. The

3121Federal Government pays between 50 percent and 83 percent of the

3132costs a state incurs for patient care. In return, the State pays

3144its portion of the costs and complies with certain statutory

3154requirements for making eligibility determinations, collecting

3160and maintaining information, and ad ministering the program. Ñ

3169Estate of Hernandez v. Ag. for Health Care Admin . , 190 So. 3d

3182139, 141 - 42 (Fla. 3rd DCA 2016)(internal citations omitted).

319244. Though participation is optional, once a s tate elects

3202to participate in the Medicaid program, it must comply with

3212federal requirements. Harris , 448 U.S. at 301.

321945. One condition for receipt of federal Medicaid funds

3228requires states to seek reimbursement for medical expenses

3236incurred on behalf of Medicaid recipients who later recover from

3246legally liable third parties. See Ahlborn , at 276.

325446. Consistent with this federal requirement, the Florida

3262Legislature enacted section 409.910, designated as the Ð Medicaid

3271Third - Party Liability Act, Ñ which authorizes and requires the

3282state to be reimbursed for Medic aid funds paid for a recipient Ó s

3296medical care when that recipient later receives a personal injury

3306judgment, award, or settlement from a third party. Smith v. Ag.

3317for Health Care Admin . , 24 So. 3d 590 (Fla. 5th DCA 2009). The

3331statute creates an automatic lien on any such judgment or

3341settlement for the medical assistance provided by Medicaid. See

3350§ 409.910(6)(c), Fla. Stat.

335447. The amount to be recovered for Medicaid medical expenses

3364from a judgment, award, or settlement from a third party is

3375determined by the formula in section 409.910(11)(f). Ag. for

3384Health Care Admin. v. Riley , 119 So. 3d 514, 515 n.3 (Fla. 2d DCA

33982013).

339948. The parties stipulated that the amount due to the AHCA

3410in satisfaction of its lien pursuant to the formula set forth in

3422sectio n 409.910(11)(f) is $54,071.79. Petitioner, however,

3430asserts that a lesser amount is owed to Respondent.

343949. Section 409.910(17)(b) provides as follows:

3445If federal law limits the agency to

3452reimbursement from the recovered medical

3457expense damages, a recip ient, or his or

3465her legal representative, may contest the

3471amount designated as recovered medical

3476expense damages payable to the agency

3482pursuant to the formula specified in

3488paragraph (11)(f) by filing a petition

3494under chapter 120 within 21 days after

3501the da te of payment of funds to the

3510agency or after the date of placing the

3518full amount of the third - party benefits

3526in the trust account for the benefit of

3534the agency pursuant to paragraph (a).

3540The petition shall be filed with the

3547Division of Administrative Hea rings. For

3553purposes of chapter 120, the payment of

3560funds to the agency or the placement of

3568the full amount of the third - party

3576benefits in the trust account for the

3583benefit of the agency constitutes final

3589agency action and notice thereof. Final

3595order auth ority for the proceedings

3601specified in this subsection rests with

3607the Division of Administrative Hearings.

3612This procedure is the exclusive method

3618for challenging the amount of third - party

3626benefits payable to the agency. In order

3633to successfully challenge the amount

3638designated as recovered medical expenses,

3643the recipient must prove, by clear and

3650convincing evidence, that the portion of

3656the total recovery which should be

3662allocated as past and future medical

3668expenses is less than the amount

3674calculated by the agency pursuant to the

3681formula set forth in paragraph (11)(f).

3687Alternatively, the recipient must prove

3692by clear and convincing evidence that

3698Medicaid provided a lesser amount of

3704medical assistance than that asserted by

3710the agency.

371250. The language of s ection 409.910(17)(b), quoted above,

3721makes it clear that the formula set forth in subsection (11)

3732constitutes a default allocation of the amount of a settlement

3742that is attributable to medical costs, and sets forth an

3752administrative procedure for adversari al testing of that

3760allocation. See Harrell v. State , 143 So. 3d 478, 480 (Fla. 1st

3772DCA 2014)(adopting the holding in Riley that petitioner Ð should

3782be afforded an opportunity to seek the reduction of a Medicaid

3793lien amount established by the statutory defa ult allocation by

3803demonstrating, with evidence, that the lien amount exceeds the

3812amount recovered for medical expenses Ñ )(quoting Roberts v.

3821Albertson Ó s, Inc. , 119 So. 3d 457, 465 - 466 (Fla. 4th DCA 2012),

3836reh Ó g and reh Ó g en banc denied sub nom . Giorgione v .

3852Albertson Ó s, Inc. , 2013 Fla. App. LEXIS 10067 (Fla. 4th DCA

3864June 26, 2013)).

386751. N otwithstanding the language of section 4 09.910(17)(b),

3876Petitioner Ó s burden in this case is a preponderance of the

3888evidence as directed by Gallarado v. Senior , Case No. 4 :16 - cv -

3902116 - MW - CAS (N.D. Fla. 2017), and stipulation of the parties .

391652. Section 409.910(11)(f) provides as follows:

3922Notwithstanding any provision in this section

3928to the contrary, in the event of an action in

3938tort against a third party in which the

3946recipie nt or his or her legal representative

3954is a party which results in a judgment, award,

3963or settlement from a third party, the amount

3971recovered shall be distributed as follows:

39771. After attorney Ó s fees and taxable costs as

3987defined by the Florida Rules of Civ il

3995Procedure, one - half of the remaining recovery

4003shall be paid to the agency up to the total

4013amount of medical assistance provided by

4019Medicaid.

40202. The remaining amount of the recovery shall

4028be paid to the recipient.

40333. For purposes of calculating the a gency Ó s

4043recovery of medical assistance benefits paid,

4049the fee for services of an attorney retained

4057by the recipient or his or her legal

4065representative shall be calculated at 25

4071percent of the judgment, award, or settlement.

40784. Notwithstanding any provisi on of this

4085section to the contrary, the agency shall be

4093entitled to all medical coverage benefits up

4100to the total amount of medical assistance

4107provided by Medicaid. For purposes of this

4114paragraph, Ð medical coverage Ñ means any

4121benefits under health insuran ce, a health

4128maintenance organization, a preferred provider

4133arrangement, or a prepaid health clinic, and

4140the portion of benefits designated for medical

4147payments under coverage for workers Ó

4153compensation, personal injury protection, and

4158casualty.

415953. In th e instant case, Petitioner proved by a

4169preponderance of the evidence that the settlement proceeds of

4178$ 225,000 represent s 7.367214 percent of Petitioner Ó s claim valued

4191at $3,054,071.79 ($225,000/$3,054,071.79) . It is concluded that

4204AHCA Ó s full Medicaid lie n amount should be reduced by the

4217percentage that Petitioner Ó s recovery represents of the total

4227value of Petitioner Ó s claim. Multiplying AHCA Ó s fu ll Medicaid

4240lien sum of $54,071.79 by 7.367214 percent results in $ 3,983.58,

4253which constitutes a fair, reason able, and accurate share of the

4264total recovery for past medical expenses actually paid by AHCA

4274through the Medicaid program. See generally Delgado (accepting

4282formula that AHCA Ó s full Medicaid lien amount should be reduced

4294by the percentage that Petitioner Ó s recovery represents of the

4305total value of Petitioner Ó s claim) .

4313DISPOSITION

4314Based on the foregoing Findings of Fact and Conclusions of

4324Law, it is hereby

4328ORDERED that :

4331The Agency for Health Care Administration is entitled to

4340$3,983.58 in satisfaction of i ts Medicaid lien.

4349DONE AND ORDERED this 9th day of April , 2019 , in

4359Tallahassee, Leon County, Florida.

4363S

4364LINZIE F. BOGAN

4367Administrative Law Judge

4370Division of Administrative Hearings

4374The DeSoto Building

43771230 Apalachee Park way

4381Tallahassee, Florida 32399 - 3060

4386(850) 488 - 9675

4390Fax Filing (850) 921 - 6847

4396www.doah.state.fl.us

4397Filed with the Clerk of the

4403Division of Administrative Hearings

4407this 9th day of April , 2019 .

4414ENDNOTE

44151/ All subsequent references to Florida Statutes wi ll be to 2018,

4427unless otherwise indicated. The parties, by stipulation, agree

4435that the 2018 version of Florida Statutes controls the instant

4445proceeding.

4446COPIES FURNISHED:

4448Alexander R. Boler, Esquire

4452Suite 300

44542073 Summit Lake Drive

4458Tallahassee, Florida 32317

4461(eServed)

4462John Cofield, Client Services Sr. Manager

4468Conduent Payment Integrity Solutions

4472Suite 300

44742073 Summit Lake Drive

4478Tallahassee, Florida 32317

4481(eServed)

4482Floyd B. Faglie, Esquire

4486Staunton and Faglie, P.L.

4490189 East Walnut Street

4494Monticello , Florida 32344

4497(eServed)

4498Kim Annette Kellum, Esquire

4502Agency for Health Care Administration

4507Mail Stop 3

45102727 Mahan Drive

4513Tallahassee, Florida 32308

4516(eServed)

4517Richard J. Shoop, Agency Clerk

4522Agency for Health Care Administration

4527Mail Stop 3

45302727 Mahan D rive

4534Tallahassee, Florida 32308

4537(eServed)

4538Shena Grantham, Esquire

4541Agency for Health Care Administration

4546Mail Stop 3

45492727 Mahan Drive

4552Tallahassee, Florida 32308

4555(eServed)

4556Thomas M. Hoeler, Esquire

4560Agency for Health Care Administration

4565Mail Stop 3

45682727 M ahan Drive

4572Tallahassee, Florida 32308

4575(eServed)

4576Stefan Grow, General Counsel

4580Agency for Health Care Administration

4585Mail Stop 3

45882727 Mahan Drive

4591Tallahassee, Florida 32308

4594(eServed)

4595Mary C. Mayhew, Secretary

4599Agency for Health Care Administration

4604Mail St op 1

46082727 Mahan Drive

4611Tallahassee, Florida 32308

4614(eServed)

4615NOTICE OF RIGHT TO JUDICIAL REVIEW

4621A party who is adversely affected by this Final Order is entitled

4633to judicial review pursuant to section 120.68, Florida Statutes.

4642Review proceedings are gover ned by the Florida Rules of Appellate

4653Procedure. Such proceedings are commenced by filing the original

4662notice of administrative appeal with the agency clerk of the

4672Division of Administrative Hearings within 30 days of rendition

4681of the order to be reviewed , and a copy of the notice,

4693accompanied by any filing fees prescribed by law, with the clerk

4704of the District Court of Appeal in the appellate district where

4715the agency maintains its headquarters or where a party resides or

4726as otherwise provided by law.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 11/17/2020
Proceedings: Unopposed Motion to Close Case File filed.
PDF:
Date: 10/17/2019
Proceedings: Transmittal letter from Claudia Llado forwarding records to the agency.
PDF:
Date: 06/07/2019
Proceedings: Index, Record, and Certificate of Record sent to the First District Court of Appeal.
PDF:
Date: 05/21/2019
Proceedings: Invoice for the record on appeal mailed.
PDF:
Date: 05/21/2019
Proceedings: Index (of the Record) sent to the parties of record.
PDF:
Date: 05/09/2019
Proceedings: Acknowledgment of New Case, First DCA Case No. 1D19-1706 filed.
PDF:
Date: 05/09/2019
Proceedings: Notice of Appeal filed and Certified copy sent to the First District Court of Appeal this date.
PDF:
Date: 04/09/2019
Proceedings: DOAH Final Order
PDF:
Date: 04/09/2019
Proceedings: Final Order (hearing held January 17, 2019). CASE CLOSED.
PDF:
Date: 03/11/2019
Proceedings: Petitioner's Proposed Final Order filed.
PDF:
Date: 03/11/2019
Proceedings: Respondent's Proposed Final Order of Dismissal filed.
PDF:
Date: 02/22/2019
Proceedings: Notice of Filing Transcript.
Date: 02/22/2019
Proceedings: Transcript of Proceedings (not available for viewing) filed.
PDF:
Date: 02/20/2019
Proceedings: Petitioners' Notice of Filing Transcript filed.
Date: 01/17/2019
Proceedings: CASE STATUS: Hearing Held.
Date: 01/14/2019
Proceedings: Petitioner's Proposed Exhibits filed (exhibits not available for viewing).
PDF:
Date: 01/11/2019
Proceedings: Joint Pre-hearing Stipulation filed.
PDF:
Date: 01/11/2019
Proceedings: Petitioner's Notice of Calling Expert Witness filed.
PDF:
Date: 01/11/2019
Proceedings: Petitioner's Notice of Filing Exhibits filed.
PDF:
Date: 01/10/2019
Proceedings: Order Granting Extension of Time.
PDF:
Date: 01/09/2019
Proceedings: Order Allowing Testimony by Telephone.
PDF:
Date: 01/08/2019
Proceedings: Joint Motion for Teleconference Appearance and for Extension of Time filed.
PDF:
Date: 11/13/2018
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 11/13/2018
Proceedings: Notice of Hearing (hearing set for January 17, 2019; 9:00 a.m.; Tallahassee, FL).
PDF:
Date: 11/13/2018
Proceedings: Response to Initial Order filed.
PDF:
Date: 11/06/2018
Proceedings: Initial Order.
PDF:
Date: 11/05/2018
Proceedings: Letter to General Counsel from C. Llado (forwarding copy of petition).
PDF:
Date: 11/02/2018
Proceedings: Petition to Determine Amount Payable to Agency for Health Care Administration in Satisfaction of Medicaid Lien filed.

Case Information

Judge:
LINZIE F. BOGAN
Date Filed:
11/02/2018
Date Assignment:
11/06/2018
Last Docket Entry:
11/17/2020
Location:
Tallahassee, Florida
District:
Northern
Agency:
Agency for Health Care Administration
Suffix:
MTR
 

Counsels

Related Florida Statute(s) (4):