19-004496MTR Russell Wellington vs. Agency For Health Care Administration
 Status: Closed
DOAH Final Order on Monday, March 2, 2020.


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Summary: Based on the uncontradicted and unrebutted testimony of his experts, the Petitioner proved by a preponderance of the evidence that ACHA's lien should be reduced to $5,260.72, by utilizing the proportionality methodolgy.

1P RELIMINARY S TATEMENT

5On Augu st 22, 2019, Petitioner filed a p etition with DOAH pursu ant to

20s ection 409.910(17)(b), Florida Statutes (2019). 1 Th e matter was assigned to

33the undersigned to conduct a formal administrative hearing and enter a final

45order.

46A final hearing was scheduled for December 16, 2019. Prior to the final

59hearing , Petitioner filed an unopposed Motion for Leave to Amend the

70Petit ion, which was granted. As a result, the Amended Petition to Determine

83Medicaid Lien is the operative p etition in this matter.

93Prior to the final hearing, the parties filed a Joint Pre - hearing Stipulation

107(“JPHS”), which included numerous stipulated matte rs. The stipulated issues

117of fact have been incorporated herein.

123The December 16, 2019 , final h earing p roceeded as scheduled, with

135Petitioner calling two expert witnesses, attorneys Steven C. Jugo , Esquire,

145and R.

147Vinson Barrett , Esquire . Petitioner’s Exh ibits 1 through 9 were

158admitted into evidence. AHCA did not call any witnesses or submit any exhibits.

171The one - volume T ranscript of the proceedings was filed with DOAH on

185January 13, 2020. After being granted an extension of time, the parties filed

198their respective proposed final o rders on January 31, 2020. Both proposed

210final o rders were considered by the undersigned in the preparation of this

223Final Order.

2251 Unless othe rwise noted, all references to s ection 409.910 are to the 2019 version of the

243statute, which is the version of the statute in effect when the personal injury action settled.

259The parties stipulated that t he 2019 version was applicable.

269F INDINGS OF F ACT

274Based on the stipulations of the parties, the evidence presented at the

286hearing, a nd the record as a whole, the following findings of fact are made:

3011. On August 9, 2018, Petitioner, Russell Wellington ("Wellington") , who

313was 59 years old, was driving a motorcycle in the inside northbound lane of

327U.S. Highway 1 at or near mile marker 9 9 in Monroe County, Florida.

3412. A vehicle driven by JI Young Chung ("Chung") , and owned by a car

357rental company, was northbound in the outside lane on U.S. Highway 1.

369Chung turned left into Wellington’s motorcycle causing him to be ejected from

381the motorc ycle.

3843. As a result of the accident, Wellington sustained catastrophic injuries

395including a right leg amputation, a fractured pelvis, fractured humerus,

405fractured ribs, kidney failure , and a head injury. Wellington is now disabled

417and unable to work. JPH S p . 10 , ¶1.

4274 . Wellington’s medical care related to the injury was paid by Medicaid,

440and Medicaid , through AHCA, provided $191,298.99 in benefits. This

450$191,298.99 constituted Wellington’s entire cl aim for past medical expenses.

461JPHS p . 10 , ¶2.

4665 . Welling ton pursued a personal injury claim against the driver and

479owner of the car that struck his motorcycle (“tortfeasors ”) to recover all his

493damages. JPHS p . 10 , ¶3.

4996 . The other driver, Chung, maintained an insurance policy with only

511$100,000 in insurance li mits , and had no other recoverable assets. The rental

525company that o wned the vehicle maintained an insurance policy with only

537$10,000 in insurance limits. Wellington’s personal injury claim against the tortfeasors was settled for an unallocated lump sum am ount of $110,000.00.

561JPHS p . 10 , ¶4.

5667 . As a condition of Wellingt on’s eligibility for Medicaid, Wellington

578assigned to AHCA his right to recover from liable third - parties medical

591expenses paid by Medicaid. See 42 U.S.C. § 1396a(a)(25)(H) ; § 409.910(6)(b) ,

602Fla. Stat.

6048 . During the pendency of Wellington’s personal injury claim, AHCA wa s

617notified of the claim and asserted a $191,298.99 Medicaid lien against

629Wellington’s cause of action and settlement of that action. JPHS p . 10 , ¶5.

6439 . AHCA did not commence a civil action to enforce its rights under

657section 409.910 or intervene or join in Wellington’s claim against the

668tortfeasors. JPHS p . 10 , ¶6.

67410 . By letter, AHCA was notifi ed of Wellington’s settlement. JPHS p . 10 ,

689¶7 .

69111 . AHCA has not filed a motion to s et - aside, void, or otherwise di spute

709Wellington’s settlement. JPHS p . 10 , ¶8.

71612 . The Medicaid program , through AHCA , spent $191,298.99 on behalf of

729Wellington, all of which represents expenditures paid for Welli ngton’s past

740medical expenses. JPHS p . 10 , ¶ 9.

74813 . Wellington’s taxable costs incurred in securing the $110,0 00 .00

761settlement totaled $766.78. JPHS p . 10 , ¶10.

76914 . Application of the formula at section 409.910(11)(f) to Wellington’s

780$110,000 .00 settlement requires payment to AHCA of $40,866.61. JPH S

793p . 11 , ¶ 11.

79815 . Petitioner has deposited the s ection 409.910(11)(f) formula amount in

810an interest bearing account for the benefit of AHCA pending an

821administrative determination of AHCA’s rights, and this constitutes “final agency action” for purposes of chapter 120, Florida Statutes, pursuant to

841section 409.910(17). JPHS p .11 , ¶12 .

848Testimony of Steven G. Jugo, Esq uire

85516 . S teven G. Jugo , Esquire ("Jugo"), was called by Petitioner. He has

871been an attorney for 41 years and practices with the law firm of Ju go &

887Murp hy in Miami, Florida.

89217. For the past 37 years, Jugo has practiced exclusively plaintiff’s

903personal injury, medical malpractice , and wrongful death law. He routinely

913handles jury trials and cases involving catastrophic injury. He is familiar

924wit h reviewing medical records, reviewing accident reports, and deposing fact

935and expert witnesses.

93818. He stays abreast of jury ver dicts in his geographic area by reviewing

952jury verdict r eporters and discussing cases with other trial attorneys. He is a

966memb er of several trial attorney organizations including the Florida Justice

977Association and the American Association for Justice.

98419. A s a routine part of his practice , Jugo makes assessments concerning

997the value of damages suffered by injured clients . He br iefly explained his

1011process for making th ese determinations. Jugo is familiar with, and routinely

1023participates in, processes involving the allocation of settlements in matters

1033including health insurance liens, worker s' compensation liens , and Medicare

1043set - asides, as well as, alloca tions of judgments made by judges post - verdict.

105920 . Jugo represented Wellington in his underlying personal injury claim.

1070Jugo reviewed the accident report, reviewed Wellington’s medical records,

1079met with Wellington numerous times , and deposed the driver of the vehicle

1091that struck Wellington’s motorcycle.

109521. As a result of the accident, Wellington underwent many surgeries and

1107extensive medical intervention. Jugo felt that Wellington’s injuries have

1116tremendously impacted his li f e in a negative way. He explained that

1129Wellin gton is no longer able to work and he is no longer able to adequately

1145care for or play with the three young children he adopted.

115622. Without objection by AHC A, Jugo testified that based on his

1168professional trai ning and experience, it was his opinion that a very

1180conservative value for Wellington’s damages w ould be $4 million . Jugo

1192explained that his valuation of Wellington’s total projected damages was

1202based on his experience, his comparison of Wellington’s case to similar jury verdicts , and discussions about the case with other attorneys.

122323. He explained that the jury verdicts outlined in Petitioner’s Exhibit 9

1235were comparable to Wellington’s case and supported his valuation of

1245Wellington’s total and projected damages in this case.

125324. Jugo detailed that about 70 percent of the verdicts he reviewed which

1266were similar in nature, were in the $5 million range. He opined that this

1280demonstrated that Wellington’s total and projected damages would also have

1290a minimum value of $4 million.

129625. Jugo discussed the value of Wellington’s damages with other

1306attorneys , and they agreed with the valuation of Wellington’s total projected

1317damages being in excess of $4 million.

132426. Wellington’s personal injury claim was brought a gainst the driver and

1336the rental car company that owned the vehicle which struck Wellington’s

1347motorcycle. The vehicle driver, Chung, maintained an insurance policy wi th

1358only $100,000.00 in coverage , and had no other recoverable assets.

136927. Jugo explained that because the vehicle was owned by a rental car

1382company, the law shielded the rental car company from suit. Nonetheless, he explained that the rental car company had a $10,000.00 insurance policy it

1407made available. As a result, the total settlement was $110,000.00.

141828 . Jugo believed that the personal injury settlement did not fully

1430compensate Wellington for all of his project ed personal injury damages.

144129. Without objection by AHC A’s counsel, Jugo testified that based on a

1454conserva tive value of all dam ages of $4 million, Wellington recove red in the

1469settlement only 2.75 percent of the value of his total and projected damages.

148230. Again, without objection, he testified that because Wellington

1491recovered only 2.75 percent of his total and projected damages, he recovered

1503in the settlement only 2.75 percent of his $191,298.99 claim for past medical

1517expenses, or $5,260.72.

152131. Jugo also testified that it would be reasonable to allocate $5,260.72 of

1535the settlement to past medical expenses, stating “[t]hat’s the maximum

1545amount I believe should be allocated to past medical expenses.”

1555Testimony of R. Vinson Barrett, Esq uire

156232 . R. Vinson Barrett , Esquire ("Barrett"), has been a trial attorney for

1577over 40 years. He is a partner with the law firm of Barrett, Nonni an d

1593Homola, P.A. , in Tallahassee. His legal practice is dedicated to plaintiff’s

1604personal injury and wrongful death cases. He has handled cases involving

1615automobile accidents and catastrophic injuries. Barrett routinely handles

1623jury trials.

162533. Barrett stay s abreast of jury verdicts by periodically reviewing jury

1637verdict reports and discussing cases with other trial attorneys. He is a

1649member of the Florida Justice Association and the Capital City Justice Association.

166134. As a routine part of his practice , B arrett makes assessments

1673concerning the value of damages suffered by injured parties. He briefly

1684explained his process for making these assessments.

169135. It has been part of his law practice to gain familiarity with settlement

1705allocation involving health i nsurance liens, Medicare set - asides , and workers’

1717compensation liens.

171936. He is also familiar with the process of allocating settlements in the

1732context of Medicaid liens , and he described that process.

174137. Barrett has been accepted as an expert in the va luation of personal

1755injury damages in federal court, as well as numerous Medicaid lien hearings

1767at DOAH.

176938. Barrett addressed the instant case. He was familiar with Wellington’s

1780injuries and the circumstances resulting in the injuries. Barrett detailed th e

1792extensive nature of Wellington’s injuries and the general impact of such injuries.

180439. Barrett testified, without objection, that based on his professional

1814training and experience, he believed Wellington’s damages had a

1823conservative value of $4 million . More specifically , he stated, “I felt that the

1837damages were conservatively, very conservatively, $4 Million. I believe this

1847case, if it had gone to a jury could well have gone up into the eight figures,

1864probably would have, I think. If I was asking for da mages in this case in front

1881of a jury, it would probably be somewhere, between $8 and 12 million or even a little higher, if I was in South Florida jurisdiction.”

190640. Barrett has been accepted as an expert in the valuation of personal

1919injury damages in oth er cases at DOAH.

192741. Barrett explained that the jury verdicts outlined in Petitioner’s

1937Exhibit 9 involved injuries comparable to Wellington’s injuries and supported

1947his valuation of Wellington’s to tal and projected damages at $4 million .

196042. Barrett wen t on to explain that the average trial verdict and award he

1975reviewed from Exhibit 9 was $5.5 million and the average award for pain and

1989suffering was $3,788,333.00.

199443. Barrett believed that the jury verdict in the Nummela case, from

2006Exhibit 9, most close ly tracked W ellington’s case. Barrett explained that the

2019injuries suffered by Nummela compared most closely with Wellington’s

2028injuries and he noted the similarities.

203444. Barrett also pointed out that the jury in Nummela had determined

2046that the damages had a value of $9 .5 million, which Barrett testified was in

2061line with what he believed a jury would have awarded to Wellington, if this

2075matter had proceeded to trial.

208045 . Barrett was aware that Wellington’s case had settled for the insurance

2093policy limits of $110,000.00. He testified that this settlement amount did not

2106fully compensate Wellington for all the personal injury damages he had

2117suffered.

211846. Barrett tes tified, without objection by AHC A’s counsel, that u sing a

2132conservative value of $4 million for a ll projected damages, the $110,000.00

2145settlement represented a recovery of 2.75 percent of the total and projected

2157damages.

215847. Barrett testified, again without ob jection, that because only 2.75

2169percent of his damages were recover ed in the settlement, onl y 2.75 percent of

2184the $191,298.99 claim for past medical expenses was recovered by Wellington

2196in the settlement, namely $5,260.72.

220248. Barrett testified that it would be reasonable to allocate $5,260.72 of

2215Wellington’s settlement to his past medical expen ses.

222349. Inexplicably, AHCA did not call any witnesses, present any

2233contradictory evidence as to a lower value of Wellington’s projected or total

2245damages, or call any witnesses to contest the methodology used to calculate

2257the $5,260.72 allocation to past medical expenses.

226550. The unrebutted evidence supports that Wellington’s total and

2274projected damages had a value in excess of $4 million.

228451. By applying the same ratio to AHCA's lien that the settlement

2296($110,000.00) bears to the total projected monetary value of all the damages

2309($4,000,000.00) , a finding is reached that $5,260.72 of the settlement is fairly

2324allocable to past medical expenses.

232952. Under the proportionality methodology , the $110,000.0 0 settlement

2339represents a 2.75 percent recovery of the expert’s to tal and projected damages

2352of $4 million ($110,000.00 is 2.75 percent of $4 million). Applying this same

23662.75 percent to the $191,298.99 claim for past medical expense, the experts

2379opined that Wellington recovered $5,260.72 in past medical expens e s in the

2393settlement. 2

239553. Of particular consequence to this case, AHCA did not call any expert

2408witnesses, nor did it present any evidence , to rebut or contradict Petitioner's

2420experts or proposed allocation of $5,260.72 in the settlement to past medical

2433e xpenses.

243554. Likewise, AHCA did not dispute or present any persuasive evidence or

2447arguments that Wellington’s injuries were overstated or incorrectly described

2456by Messrs. Jugo or Barrett.

24612 This methodology is commonly referred to as the proportionality test or pro - rata formula.

247755. On AHCA's cross - examination of the attorney experts, the

2488metho dology used by them to arrive at their opinion concerning a fair

2501allocation of past medical expenses in Wellington’s settlement was not

2511persuasively challenged or overcome by AHCA.

251756. Simply put, the amount of $5,260.72 proposed by Petitioner as a f air

2532allocation of past medical expenses from the settlement agreement was not successfully refuted or challenged by AHCA.

254957. Under the circumstances and proof presented in this case, Petitioner

2560proved by a preponderance of the evidence that $5,260.72 was a fair

2573allocation of the total settlement amount to past medical expenses.

258358. AHC A failed to develop any adequate basis or evidence in the record to

2598reject Jugo’s or Barrett’s opinion, or to reach any other conclusion concerning

2610a fair allocation, other than the amount of $5,260.72 presented by the evidence and propose d by Petitioner.

2629C ONCLUSIONS OF L AW

263459. The Agency for Health Care Administration is the state agency

2645responsible for administering Florida's Medicaid program. § 409.910(2), Fla.

2654Stat.

265560. DOAH has jurisdiction of this matter, pursuant to section

2665409.910(17)(b), and the parties acknowledged that the proper standard of proof in this proceeding for Petitioner is a "preponderance of the evidence."

268761. "Medicaid is a cooperative federal - state welfare program providing

2698medical assistance to needy people." Roberts v. Albertson's Inc. , 119 So. 3d

2710457 (Fla. 4th DCA 2012). Although state participation in this federal program

2722is voluntary, once a state elects to participate, it must comply with feder al

2736Medicaid law. Id.

273962. Federal law requires that participating states seek reimbursement for

2749medical expenses incurred on behalf of Medicaid recipients who later recover

2760from legally - liable third parties.

276663. Under the United States Supreme Court's rea soning in Arkansas

2777Department of Health and Human Services v. Ahlborn , 547 U.S. 268 (2006),

2789the federal Medicaid anti - lien provision at 42 U.S.C. § 1396p(a)(1) prohibit s a

2804Medicaid lien on any proceeds from a Medicaid recipient's tort settlement.

281564. Howe ver , the provisions in federal law requiring states to seek

2827reimbursement of their Medicaid expenditures from liable third parties, also

2837create an express exception to the anti - lien law and authorizes states to seek

2852reimbursement from the medical expense p ortion of the recipient's tort

2863recovery.

286465. As noted, t he Fed eral Medicaid Act limits a state 's recovery to certain

2880portions of the settlement funds received by the Medicaid recipient. In

2891Florida , t his has been recently interpreted by the Florida Supreme Court to

2904be the amount in a personal injury settlement which is fairly allocable to past

2918(not future) medical expenses. Giraldo v. Ag. for Health Care Admin. , 248 So.

29313d 53 , 56 (Fla. 2018).

293666. In this case, Wellington settled his personal injury claim ag ainst third

2949parties who were liable to him for injuries associated with AHCA' s Medicaid

2962claim. Therefore, AHC A has a lien which may be enforced against

2974Wellington’s tort settlement.

297767. The underlying question in this case, however, is how much is AHCA

2990ent itled to recover from Petitioner as payment for past medical services

3002provided to him?

300568. Section 409.910(11) establishes a formula to determine the amount

3015AHCA may recover for medical assistance benefits paid from a judgment,

3026award, or settlement from a third party. Section 409.910(11)(f) states, in

3037pertinent part:

3039Notwithstanding any provision in this section to

3046the contrary, in the event of an action in tort against a third party in which the recipient or his

3066or her legal representative is a party whi ch results

3076in a judgment, award, or settlement from a third

3085party, the amount recovered shall be distributed as

3093follows:

30941. After attorney's fees and taxable costs as defined

3103by the Florida Rules of Civil Procedure, one - half of

3114the remaining recovery shal l be paid to the agency

3124up to the total amount of medical assistance

3132provided by Medicaid.

31352. The remaining amount of the recovery shall be

3144paid to the recipient.

31483. For purposes of calculating the agency's recovery

3156of medical assistance benefits paid, t he fee for

3165services of an attorney retained by the recipient or

3174his or her legal representative shall be calculated at 25 percent of the judgment, award, or

3190settlement.

31914. Notwithstanding any provision of this section to

3199the contrary, the agency shall be entitled to all

3208medical coverage benefits up to the total amount of

3217medical assistance provided by Medicaid. For

3223purposes of this paragraph, "medical coverage"

3229means any benefits under health insurance, a

3236health maintenance organization, a preferred

3241provid er arrangement, or a prepaid health clinic, and the portion of benefits designated for medical

3257payments under coverage for workers'

3262compensation, personal injury protection, and

3267casualty.

326869. In essence , section 409.910(11)(f) provides that the agency's r ecovery

3279for a Medicaid lien is limited to the lesser of: (1) its full lien; or (2) one - half of

3299the total award, after deducting attorney's fees of 25 percent of the recovery

3312and taxable costs, not to exceed the total amount actually paid by Medicaid

3325on the recipient's behalf. See Ag. for Health Care Admin. v. Riley , 119 So. 3d

3340514 (Fla. 2d DCA 2013).

334570. Here, the parties agreed that application of this section 409.910( 11 )(f)

3358formula to Petitioner's settlement would require payment to AHCA of

3368$40,86 6.61. JP HS p. 11, ¶11.

337671. However, another section , section 409.910(17)(b), provides a method

3385by which a Medicaid recipi ent may challenge the amount AHC A seeks under

3399the statutory default formula found above at section 409.910(11)(f).

340872. This is done during an administrative hearing at DOAH. It is to the

3422proof presented at the administr ative hearing that a determination

3432concerning the proper and fair allocation of the settlement agreement for past

3444medical expenses should be made.

344973. More specifically, followin g the United States Supreme Court decision

3460in Wos v. E.M.A. , 568 U.S. 627, 633 (2013), the Florida Legislature created an

3474administrative process to challenge and ultimately determine what portion of

3484a judgment, award, or settlement in a tort action is prop erly allocable to

3498medical expens es and, thus, what portion of a Petitioner’s settlement may be

3511recovered to reimbur se the Medicaid lien held by AHC A .

3523Section 409.910(17)(b) states:

3526A recipient may contest the amount designated as

3534recovered medical expense damages payable to the

3541agency pursuant to the formula specified in

3548paragraph (11)(f) by filing a petition under chapter

3556120 within 21 days after the date of payment of funds to the agency or after the date of placing the full amount of the third - party ben efits in the trust

3589account for the benefit of the agency pursuant to paragraph (a). The petition shall be filed with the

3607Division of Administrative Hearings. For purposes

3613of chapter 120, the payment of funds to the agency or the placement of the full amoun t of the third -

3635party benefits in the trust account for the benefit of the agency constitutes final agency action and notice thereof. Final order authority for the

3659proceedings specified in this subsection rests with the Division of Administrative Hearings. This

3672procedure is the exclusive method for challenging the amount of third - party benefits payable to the

3689agency. In order to successfully challenge the

3696amount payable to the agency, the recipient must

3704prove, by clear and convincing evidence, that a

3712lesser portion of the total recovery should be

3720allocated as reimbursement for past and future medical expenses than the amount calculated by the agency pursuant to the formula set forth in

3743paragraph (11)(f) or that Medicaid provided a lesser

3751amount of medical ass istance than that asserted by

3760the agency. 3

376374. In more simple terms, if Petitioner can demonstrate, by a

3774preponderance of the evidence, that the portion of his settlement agreement

3785fairly allocable as payment for past medical expense is less than the amou nt

3799the agency seeks, then the amount Petitioner is obligated to pay to AHCA

3812would be reduced.

381575. How to arrive at this amount and fairly allocate the past medical

3828expense portion of an undiff erentiated settlement agreement has been the

3839subject of consider able debate , and has not been squarely addressed by the

3852United States Supreme Court:

3856A question the Court had no occasion to resolve in

3866Ahlborn is how to determine what portion of a settlement represents payment for medical care.

3881The parties in that case s tipulated that about 6

3891percent of respondent Ahlborn's tort recovery

3897(approximately $35,600 of a $550,000 settlement)

3905represented compensation for medical care. Id., at

3912274, 126 S. Ct. 1752. The Court nonetheless

3920anticipated the concern that some settlemen ts

3927would not include an itemized allocation. It also

3935recognized the possibility that Medicaid beneficiaries and tortfeasors might collaborate to

3946allocate an artificially low portion of a settlement to

3955medical expenses.

3957Wos , 568 U.S. at 627, 634.

396376. In i ts recent opinion in Giraldo , the Florida Supreme Court held that

3977future medical expense damages recovered by a Medicaid recipient are not

39883 The parties agree, however, that the standard of proof is a preponderance of the evidence,

4004not clear and convincing .

4009available as a source of reimbursement for Medicaid payments made for the

4021recipient . Rather, only past medical expens es may be considered.

403277. S everal recent d i strict c ourt of a ppeal opinions have consider ed

4048noteworthy, the following statement by the Florida Supreme Court :

4058Because we hold that the federal Medicaid Act

4066prohibits AHCA from placing a lien on the future

4075medi cal expenses portion of a Medicaid recipient's

4083tort recovery, we remand with instructions that the

4091First District direct the ALJ to reduce AHCA's lien

4100amount to $13,881.79. Although a factfinder may

4108reject "uncontradicted testimony," t here must be a "reaso nable basis in the evidence" for the rejection.

4125Wald v. Grainger , 64 So. 3d 1201, 1205 - 06 (Fla.

41362011). Here, Villa presented uncontradicted

4141evidence establishing $13,881.79 as the settlement portion properly allocated to his past medical expenses, and ther e is no reasonable basis in this

4165record to reject Villa's evidence. For this reason, no

4174further fact finding is required.

4179Giraldo , 248 So. 3d at 56 .

418678. In this case , there was no evidence presented by AHCA to contest or

4200contradict the amount of $5,260 .72 presented by Petition er's expert as the

4214fair allocation of past medical expenses in Wellington’s settlement.

422379. Counsel for AHCA cross - examined Petitioner's experts, but elicited no

4235compelling information or evidence assailing their opinion s that a f air

4247allocation of past medical expenses was $5,260.72.

425580. In short, Petitioner's expert testimony concerning a fair allocation of

4266the settlement agreement was unchallenged by AHCA, without any contrary

4276or contradictory facts or evidence in the record.

42848 1. Many of the questions that existed in the law regarding the proper

4298methodology or proof to apply in a section 409.910( 17 ) (b) hearing ha ve been

4314resolved by the First District Court of Appeal in a series of recent opinions.

4328W hile the Florida Supreme Court has not , arguably, issued a definitive or

4341express opinion on the mat ter, the prevailing law in the F irst Di strict Court

4357of Appeal appears now to be settled .

436582. In Eady v. Agency for Health Care Admin inistration , 279 So. 3d 1249

4379(Fla. 1st DCA 2019); Larr igui - Negron v. Agency for Health Care

4392Admin istration , 280 So. 3d 550 (Fla. 1st DCA 2019); and Moj ica v. Agency f or

4409Health Care Admin istration , 285 So. 3d 393 (Fla. 1st DCA 2019) , the First

4423District Court of Appeal panels discussed and accepted the proporti onality

4434test or method advanced by Petitioner. 4

444183. More specifically, a Petitioner may carry his burden of proving how

4453much of his undifferentiated settlement agreement is fairly allocable to past

4464medical expenses, by applying the same ratio or percentag e Pet itioner’s

4476settlement amount bears to th e total projected damage claim , to AHCA's

4488claim for past medical expenses . This may be accomplished through the

4500testimony of expert witnesses.

45044 These cases recognize, however, that AHCA may present evidence in an effort to refute or

4520contradict the expert testimony offered. Likewis e, every case is different. Eady , Larrigui -

4534Negron , and Mojica do not define the exact parameters of the pro - rata formula, nor do they

4552exclude the possibility that there may be facts elicited from the experts or other evidence

4567presented, to warrant an adjus tment to the proportionality test or the total damages

4581projected by the experts.

458584. T he First D istrict Court of Appeal panels in these three recent cases

4600have determined that it would be error to reject the expert testimony , unless

4613there is a basis in the record to do so. There was no basis in this record to do

4632so.

463385. As such, and based on this record, the undersigned is con strained to

4647conclude under the first d istrict’s opinions in Eady , Larrigui - Negron , and

4660Mojica , that $5,260.72 is the amount due to AHCA.

4670O RDER

4672Based on the foregoing Findings of Fact and Conclusions of Law, it is

4685O RDERED that the Agency for Health Care Administration is entitled t o

4698recover payment of $5,260.72 from the amount recovered in Petitioner's

4709personal injury matter.

4712D ONE A ND O RDERED this 2nd day of March , 2020 , in Tallahassee, Leon

4727County, Florida.

4729R OBERT L. K ILBRIDE

4734Administrative Law Judge

4737Division of Administrative Hearings

4741The DeSoto Building

47441230 Apalachee Parkway

4747Tallahassee, Florida 32399 - 3060

4752(850) 488 - 9675

4756Fax Filing (850) 921 - 6847

4762www.doah.state.fl.us

4763Filed with the Clerk of the

4769Division of Administrative Hearings

4773this 2nd day of March , 2020 .

4780C OPIES F URNI SHED :

4786Alexander R. Boler, Esquire

47902073 Summit Lake Drive , Suite 300

4796Tallahassee, Florida 32317

4799(eServed)

4800Floyd B. Faglie, Esquire

4804Staunton and Faglie, P.L.

4808189 East Walnut Street

4812Monticello, Florida 32344

4815(eServed)

4816Shena Grantham, Esquire

4819Agency for H ealth Care Administration

48252727 Mahan Drive , Mail Stop 3

4831Tallahassee, Florida 32308

4834(eServed)

4835Steven G. Jugo, Esquire Jugo & Murphy

48427695 Southwest 104th Street , Suite 200

4848Miami, Florida 33156

4851(eServed)

4852Mary C. Mayhew, Secretary

4856Agency for Health Care Ad ministration

48622727 Mahan Drive, Mail Stop 1

4868Tallahassee, Florida 32308

4871(eServed)

4872Stefan Grow, General Counsel

4876Agency for Health Care Administration

48812727 Mahan Drive, Mail Stop 3

4887Tallahassee, Florida 32308

4890(eServed)

4891Richard J. Shoop, Agency Clerk

4896Agency for Health Care Administration

49012727 Mahan Drive, Mail Stop 3

4907Tallahassee, Florida 32308

4910(eServed)

4911Thomas M. Hoeler, Esquire

4915Agency for Health Care Administration

49202727 Mahan Drive, Mail Stop 3

4926Tallahassee, Florida 32308

4929(eServed)

4930N OTICE OF R IGHT T O J U DICIAL R EVIEW

4942A party who is adversely affected by this Final Order is entitled to judicial

4956review pursuant to section 120.68, Florida Statutes. Review proceedings are

4966governed by the Florida Rules of Appellate Procedure. Such proceedings are

4977commenced by filing the original notice of administrative appeal with the agency clerk of the Division of Administrative Hearings within 30 days of rendition of the order to be reviewed, and a copy of the notice, accompanied by any filing fees prescribed by law, with t he clerk of the District Court of

5030Appeal in the appellate district where the agency maintains its headquarters

5041or where a party resides or as otherwise provided by law.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 09/23/2020
Proceedings: Transmittal letter from Claudia Llado forwarding the one-volume Transcript, along with Exhibits to Respondent.
PDF:
Date: 03/02/2020
Proceedings: DOAH Final Order
PDF:
Date: 03/02/2020
Proceedings: Final Order (hearing held December 16, 2019). CASE CLOSED.
PDF:
Date: 01/31/2020
Proceedings: Respondent's Proposed Final Order filed.
PDF:
Date: 01/31/2020
Proceedings: Petitioner's Proposed Final Order filed.
PDF:
Date: 01/21/2020
Proceedings: Order Granting Extension of Time.
PDF:
Date: 01/21/2020
Proceedings: Joint Motion for Extension of Time to File Proposed Final Orders filed.
PDF:
Date: 01/13/2020
Proceedings: Notice of Filing Transcript.
Date: 01/13/2020
Proceedings: Transcript of Proceedings (not available for viewing) filed.
PDF:
Date: 01/09/2020
Proceedings: Petitioner's Notice of Filing Transcript filed.
Date: 12/16/2019
Proceedings: CASE STATUS: Hearing Held.
Date: 12/12/2019
Proceedings: Petitioner's Proposed Exhibits filed (exhibits not available for viewing).
PDF:
Date: 12/11/2019
Proceedings: Petitioners' Notice of Filing Proposed Exhibits filed.
PDF:
Date: 12/11/2019
Proceedings: Joint Pre-Hearing Stipulation filed.
PDF:
Date: 12/11/2019
Proceedings: Petitioner's Notice of Calling Expert Witnesses filed.
PDF:
Date: 12/11/2019
Proceedings: Order Granting Motion for Leave to Amend Petition.
PDF:
Date: 12/10/2019
Proceedings: Amended Petition to Determine Medicaid Lien filed.
PDF:
Date: 12/10/2019
Proceedings: Motion for Leave to Amend Petition filed.
PDF:
Date: 09/03/2019
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 09/03/2019
Proceedings: Notice of Hearing by Video Teleconference (hearing set for December 16, 2019; 9:00 a.m.; Miami and Tallahassee, FL).
PDF:
Date: 08/30/2019
Proceedings: Notice of Appearance (Floyd Faglie) filed.
PDF:
Date: 08/30/2019
Proceedings: Response to Initial Order filed.
PDF:
Date: 08/22/2019
Proceedings: Initial Order.
PDF:
Date: 08/22/2019
Proceedings: Letter to General Counsel from C. Llado (forwarding copy of petition).
PDF:
Date: 08/22/2019
Proceedings: Petition to Determine Medicaid Lien filed.

Case Information

Judge:
ROBERT L. KILBRIDE
Date Filed:
08/22/2019
Date Assignment:
08/22/2019
Last Docket Entry:
09/23/2020
Location:
Miami, Florida
District:
Southern
Agency:
Agency for Health Care Administration
Suffix:
MTR
 

Counsels

Related Florida Statute(s) (2):