21-000052MTR Angela D. Sharpe, As Personal Representative Of The Estate Of Thomas Kenneth Sharpe, Deceased vs. Agency For Health Care Administration
 Status: Closed
DOAH Final Order on Friday, April 30, 2021.


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Summary: Under the prevailing law, the Petitioner, who died prior to the settlement of his underlying wrongful death case, was not entitled to a reduction of the Medicaid lien claimed by ACHA which applied and used the formula found in 409.910(11)(f).

1S TATE OF F LORIDA

6D IVISION OF A DMINISTRATIVE H EARINGS

13A NGELA D. S HARPE , A S P ERSONAL

22R EPRESENTATIVE OF T HE E STATE OF

30T HOMAS K ENNETH S HARPE , D ECEASED ,

38Petitioner ,

39vs. Case No. 21 - 0052MTR

45A GENCY F OR H EALTH C ARE

53A DMINISTRATION ,

55Respondent .

57/

58F INAL O RDER

62A final hearing was conducted on March 9, 2021 , before Robert L.

74Kilbride, Administrative Law Judge of the Division of Administrative

83Hearings ("DOAH"), by video teleconfer ence, using Zoom technology.

94A PPEARANCES

96For Petitioner: Darryn L. Silverstein, Esquire

102Silverstein, Silverstein and Silverstein, P.A.

10720801 Biscayne Boulevard , Suite 504

112Aventura, Florida 33180

115For Respondent: Alexander R. Boler, Esq uire

1222073 Summit Lake Drive , Suite 300

128Tallahassee, Florida 32317

131S TATEMENT O F T HE I SSUE

139What amount of the wrongful death settlement recovered by Petitioner,

149Angela D. Sharpe , as Personal Representative of the E state of Thomas

161Kenneth Sharpe , deceased ("Sharpe"), must be paid to Respondent, Agency

173for Health Care Administration ("AHCA" or "Agency"), pursuant to section

185409.910, Florida Statutes (2020), to satisfy the Agency's claimed $119,687.65

196Medicaid Lien.

198P RELIMINARY S TATEMENT

202On Januar y 6, 2021, Sharpe filed a Petition to Determine Medicaid's Lien

215Amount to Satisfy Claim Against Personal Injury/Wrongful Death Recovery

224by the Agency for Health Care Administration, pursuant to section

234409.910(17)(b). The petition challenged the amount of AHCAÔs lien and

244requested a hearing.

247The matter was assigned to the undersigned to conduct an evidentiary

258administrative hearing and render a final order establishing AHCA's lien

268recovery amount.

270The case was set for final hearing on March 9, 2021, and p roceeded to a

286hearing on that date.

290The parties filed a pre - hearing stipulation that included undisputed facts.

302At the final hearing, Sharpe's Exhibits 1, 4 , and 6 were admitted into

315evidence without objection. Sharpe presented testimony of personal

323injur y/wrongful death lawyer, Darryn L. Silverstein, Esquire ; additional

332testimony from Kenneth Bush, Esquire ; and testimony from the defense

342attorney in the personal injury lawsuit , Benjamin Bedard , Esquire . The

353Agency did not offer any exhibits nor did it cal l any witnesses.

366Petitioner ordered the hearing Transcript. After the hearing, the

375undersigned issued an Order on March 29, 2021 , requesting that the parties

387address the applicability of the First District Court of AppealÔs recent

398decision in Cabrera v. S tate of Florida, Agency for Health Care

410Administration , issued on March 29, 2021, in Case No. 1D18 - 755 and any

424related case. Both parties did so and timely filed proposed final orders, which

437were reviewed and considered by the undersigned in the preparatio n of this

450Final Order.

452All references to the Florida Statutes are to the version in effect on the

466date of the action or conduct involved.

473F INDINGS O F F ACT

479T he un d e rs ig ned m a k es the f o ll o w i ng F i n di n g s of Fa c t ba s ed on t he

516s t i p u la t i ons of the par t i es a nd t he material e vi d en c e pr e s ented a t the

549he a r i n g .

556P AR T IES ' S T I P U L A T ED F AC T S

5741. On June 23, 2016, Mr. Sharpe was operating a motor scooter and was

588seriously injured after he had a collision with an automobile. Mr. Sharpe died

601on July 17, 2019.

6052. Mr. Sharpe was survived by his wife, Angela D. Sharpe.

6163. Medicaid claims that Mr. SharpeÔs medical care , related to the injuries ,

628was paid in the amount of $119,687.65 by AHCA. Mr. SharpeÔs entire claim

642for past medical expenses based on liens was $133,423.67.

6524. Th e death certificate related Mr. SharpeÔs death to the collision.

6645. Angela D. Sharpe was appointed Personal Representative of the Estate

675of Thomas Kenneth Sharpe.

6796. Angela D. Sharpe , as the Personal Representative of the Estate of

691Thomas Kenneth Sharpe, d eceased , brought a wrongful death action to

702recover both the individual statutory damages of Mr. SharpeÔs surviving

712spouse , as well as the individual statutory damages of the Estate of Thomas

725Kenneth Sharpe, deceased and a survival claim against the operat or of the

738automobile. (ÑDefendantÒ).

7407. The case was settled through a settlement in the amount of

752$100,000.00.

7548. During the pendency of the action, AHCA was notified of the action and

768AHCA asserted a $119,687.65 Medicaid lien against the Estate of Thoma s

781Kenneth SharpeÔs cause of action and settlement of that action.

7919. By letter, AHCA was notified of the settlement. This letter requested

803AHCA to advise as to the amount AHCA would accept in satisfaction of the

817$119,687.65 Medicaid lien

82110. AHCA calculate d its payment pursuant to the section 409.910(11)(f)

832formula based on the gross $100,000 .00 settlement, under which AHCA

844demanded $29,353.30.

847O THER S TIPULATIONS O F T HE P ARTIES

85711. Based on AHCAÔs claimed lien of $119,687.65, Petitioner and AHCA

869agree that application of the formula at section 409.910(11)(f) to the

880$100,000.00 settlement amount requires payment to AHCA in the amount of

892$29,353.30, if that amount is less than AHCAÔs lien.

90212. Petitioner and AHCA agree that pursuant to section 409.910(17)(b),

912Petitioner may contest the amount payable to AHCA per the formula in

924section 409.910(11)(f) by filing a Petition with DOAH. 1

93313. Petitioner and AHCA agree that DOAH has jurisdiction , pursuant to

944section 409.910(17)(b) , to determine the Ñportion of a total recovery which

955should be allocated as past medical expenses,Ò including when the total

967recovery is an unallocated lump - sum settlement.

975A D D I T I O N AL E V I D E N C E A T T HE H EAR I N G

100114. A t the f i n a l he a ri n g , Sharpe pr e s ented e x p e r t te s t i mony fr om several

1034qualified a ttorneys who either represented Mr. Sharpe for his claims

10451 As explained further herein, this stipulation is contrary to, or, at least, is severely

1060undermined by the law outlined by the Cabrer a case.

1070(Silverstein), defended the opposing party defendant (Bedard) , or reviewed

1079the file and case documents in preparation for the hearing (Bush).

109015. The thrust of PetitionerÔs evidence was to establis h an evidentiary

1102basis to justify the application of the pro rata or proportionality test -- one

1116method frequently utilized by litigants to reduce A HC AÔs lien. See generally

1129Eady v. State , Ag. For Health C are Admin. , 279 So. 3d 1249 (Fla. 1 st DCA

11462019).

11471 6. However, application of the Medicaid lien principles articulated in

1158Cabrera fully dispos e of this case . T he recitation of additional facts and

1173opinions regarding the qualifications of the experts or the appropriate

1183methodology to use is unwarranted. It is unnecessary and improper to reach

1195any remaining issues as judicial restraint requires that the undersigned

1205resolve this case on the narrowest possible grounds. Digiport , Inc. v. Foram

1217Development BFC , LLC , 2020 WL 7379128, N. 5, ( Dec . 16, 2020 ) (Florida

1232Third District Court of Appeal) (Applying the principle of judicial restraint) ;

1243The Bank of New York Mellon Corp . v. Hernandez , 299 So. 3d 461, 466,

1258concurring opinion by Fernandez (Fla. 3rd DCA, 2020)

126617. It was undisputed that the settlement of the under lying wrongful

1278death case occurred after Mr. Sharpe had passed away from his injuries

1290related to the automobile accident.

129518. These are the relevant and material facts necessary to establish a

1307basis for the conclusions and ultimate action taken in this Fi nal Order. As

1321explored more fully below, because Mr. Sharpe died before the settlement

1332agreement was reached , the anti - lien provisions of the Medicaid Act do not

1346apply to limit the recovery by A HC A, which properly utilized the formula

1360found at section 409. 910(11)(f). Cabrera v. State of Fla . , Ag . for Health Care

1376Admin ., 2021 WL 1152328 ( Ma r. 26, 2021 ) .

1388C ONCLUSIONS O F L AW

139419. A HC A i s the s t a te ag e n c y r e sp on s ibl e f o r a d m i n i s te r i ng F l o rid a ' s

1438M e d i c ai d pr o g r a m. § 409 . 910 ( 2 ) , F la . St a t.

146420. DOAH has jurisdictio n over the parties and the subject matter of this

1478proceeding pursuant to sections 120.569 and 120.57(1), Florida Statutes.

1487F EDERAL M EDICAID L AW OF G ENERAL A PPLICABILITY

149821. " M e d i c ai d i s a c o o p e r a t iv e f e d e r al - s t a te w e l f a r e pr o g r a m pr o vi d i ng

1549me d i c a l a s s i s t a n c e to nee d y p eo p l e . " Ro b er t s v. Al b er t s on ' s , I n c . , 11 9 So. 3d

1597457 , 4 5 8 ( F la . 4 th D C A 2 0 12 ) . A l thou g h s t a te p a r t i c i p a t i on i n th i s f e d e r a l

1648pr o g r a m i s v o l unt a r y , on c e a s t a te e l e c ts to p a r t i c i p a te, i t mu s t c o m p l y w i t h

1702th e f e d e r a l M e d i c ai d l a w. I d.

172322. F e d e r a l la w r e q u ir es th a t p a r t i c i p a t i ng s t a tes s eek r e i m b u rs ement f or

1770me d i c a l e x p en s es i n c u rr ed on b eh al f of M e d i c ai d r e c i p i ents w ho la ter r e c o v er

1818fr om l e gally - l i abl e t h ir d p a r t i e s .

184023. U n d er the U n i ted St a tes Su pr eme C ou r t ' s r e a s on i ng i n Ar k a n sas

1876D epar tm e nt of H e al th a nd H um a n S er v i c e s v. A h l b o r n , 54 7 U. S. 2 6 8 ( 2 0 06 ) ,

1919the f e d e r a l M e d i c ai d Ñ a nt i - li enÒ pr o vi s i ons a t 4 2 U. S . C . § 13 9 6 p( a ) ( 1 )

1966generally pr oh ibi t a M e d i c ai d li en on a ny pr o c e e d s fr om a M e d i c ai d r e c i p i ent ' s

2010to r t s e tt l ement.

201824. H o w e v e r , the pr o vi s i ons r e q u i r i ng s t a t e s to s eek r e i m b u rs e m ent of

2061the i r M e d i c ai d e x p en d i tu r es fr om liabl e th i r d p a r t i e s , cr e a te a n e x pr e s s

2107e x c e p t i on to the Ñ a n t i - li en Ò la w a nd a utho r i z e s t a tes to s eek r e i m b u rs ement

2151fr om the me d i ca l e x p e n s e p o r t i on of the r e c i p i ent ' s to r t r e c o v e r y .

219525. A s note d , the F e d e r a l M e d i c ai d A c t li m i ts a s t a te ' s r e c o v e r y t o c e r t ai n

2245p o r t i ons of the s ett l e ment f un d s r e c e iv ed b y the M e d i c ai d r e c i p i e nt. I n

2288Fl o r i d a , t h i s h a s b een r e c ent l y i nte rpr eted b y the F l o r i d a Su pr e me C ou r t to b e

2334the a mount i n a p e rs on a l i n j u r y s et t l em e nt w h i c h i s f ai rl y all o c abl e to p a s t

2380( not f utu r e) me d i c a l e x p en s e s . G iral do v. A g . f or Heal th C ar e A dm i n . , 24 8 S o.

24233 d 53 , 5 6 ( F la . 2 0 18 ) .

243726. I n th i s c a s e, Petitioner s ett l ed the p e rs on a l i n j u r y/wrongful death c lai m

2469a g a i n s t a t h i rd p a r t y w ho wa s lia bl e for Mr. SharpeÔs damages r e l at e d t o

2505AH C A' s M e d i c ai d l i e n, and for Mrs. SharpeÔs damage s . T he r e f o r e, AHCA' s li e n

2540m a y b e en f o rc ed a g ai n s t Sharpe' s to r t s e tt l ement. 2

256727. Notably, and of paramount importance to the proper resolution of this

2579dispute, Mr. Sharpe succumbed to his injuries and passed away prior to the

2592settlement of the wrongful death case.

259828. Se c t i on 409 . 910 ( 1 1 ) e s t abl is hes a f o r mu l a to d ete r m i ne the a m oun t

2636AHC A m a y r e c o v er f o r me d i c a l a ss i s t a n c e b ene f i ts p ai d fr om a j u d g ment,

2681a w a rd , or s ett l ement f r om a th i r d p a r t y . Se c t i on 40 9 . 9 1 0 ( 11 )(f ) s t a te s , i n

2726p e r t i nent p a r t:

2736N otw i th s t a n d i n g a n y pr o vi s i on i n th i s s e c t i on to

2769the c ont r a r y , i n the e v ent of a n a c t i o n i n to r t

2796agai n s t a t h i r d p a r ty i n w h i c h the r e c i p i ent or

2826h i s or her l e ga l r e pr e s en t a t iv e i s a p a r ty w h i c h

2858r e s u l ts i n a j u d g me n t, a w a r d , or s ett l em e nt f r o m

2890a th i r d p a r t y , the a mount r e c o v e r ed s h al l b e

2917d i s t r ib uted a s f o ll o w s:

29321 . A f ter a tto r ne y Ôs fees and taxable costs as

2948d e f i ned b y the Fl o r i d a R u l es of C ivi l P r o c e d u r e,

2979o n e - h al f of the r em ai n i ng r e c o v e r y s h al l b e p ai d to

3012the ag en c y up to t he tot a l a mount of me d i ca l

3032a ss i s t a n c e pr o vi d ed b y M e d i c ai d.

30552 . T he r em ai n i ng a m ount of the r e c o v e r y s h al l b e

3084p ai d to the r e c i p i e nt.

30973 . F or p u rp o s e s of c al c u la t i ng the a g en c y ' s r e c o v e r y

3133of me d i c a l a ss i s t a n c e b ene f i ts pai d , the f ee f o r

3162s e r vi c es of a n a tto r n e y r et ai ned b y the r e c i p i ent or

3192h i s or her l e ga l r e pr e s ent a t i v e s h al l b e c al c u la ted

3224at 25 percent of the judgment , a w a rd , or

3235s ett l ement.

32392 However, to the extent and degree that the $100,000.00 undifferentiated settlement

3252included intangible damages Mrs. Sharpe may have suffered, those damages would not be

3265recoverable by A HC A. Regardless, t here was no credible or persuasive testimon y at the

3282hearing to quantify what portion of the settlement was for her damages.

32944 . N otw i th s t a n d i n g a ny pr o vi s i on of t h i s s e c t i on

3327to the c ont r a r y , the a g en c y s h al l b e ent i t l e d to al l

3356me d i c a l c o v e r ag e b e n e f i ts up to the to t a l a mount

3385of me d i c a l a ss i s t a n c e pr o vi d ed b y M e d i c a i d . F or

3419p u rp o s es of th i s p a r ag r a p h, "me d i c a l c o v e r ag e"

3450me a ns a ny b ene f i ts un d er he al th i n s u ra n c e, a

3475he al th m ai nten a n c e o r ga n i z a t i on, a p r e f e rr ed

3503pr o vi d er a rr a n g eme n t, or a pr e p ai d he al t h c li n i c ,

3532a nd the portion of benefits designated for me d i c a l

3546p ay ments u n d er c o v e r ag e f or w o rk e r s '

3569c om p en s a t i on, p e rs on a l i n j u r y pr o te c t i o n, a nd

3600c a s u al t y .

360829. I n e ss en c e, s e c t i on 409 . 910 ( 11 )(f ) pr o vi d es th a t the A g en c y ' s r e c o v e r y

3653f or a M e d i c ai d li en i s the l e ss er o f : ( 1 ) i ts f u l l li e n ; or ( 2 ) one - h al f of the tot a l

3701a w a rd , a f ter d e d u c t i ng a tto r ne y ' s f ees of 25 % of the r e c o v e r y a nd t axabl e

3743c o s t s , not to e x c eed t h e tot a l a mount a c tu a ll y p ai d b y M e d i c ai d on the

3782r e c i p i ent ' s b eh al f . S e e A g . f or Heal th Car e A dm i n. v. R ile y , 11 9 S o . 3 d 51 4

3825( F la . 2 d D C A 20 1 3 ) .

383930. H e r e, the p a r t i es ag r eed th a t a pp li c a t i o n of the s e c t i o n 4 0 9.9 1 0 ( 11 )(f)

3883f o r mu l a to P e t i t i one r Ôs s ett l ement w ou l d r e q u i r e p ay ment to A HC A of

3922$29,353.30.

392431. A n other c o rr e sp on d i ng s e c t i on, section 40 9 .910 ( 17 ) ( b ) , out li ned b e l o w ,

3961pr o v id es a met h od b y w h i c h a M e d i c ai d r e c i p i ent , under certain

3994circumstances, m a y c h all en g e the a mount AHC A s ee k s un d er the f o r mu l a

4023f o u nd ab o v e a t s e c t i on 40 9 . 9 1 0 ( 11 )(f) .

404932. M o r e sp e c i f i c all y , f o ll ow i n g the U n i ted St a tes Su pr eme C ou r t 's d e c i s i on

4093i n W os v. E . M . A . , 5 6 8 U. S. 62 7 , 6 3 3 ( 2013 ) , the Fl o r i d a L e gi s la tu r e cr e a ted a n

4138a d m i n i s t ra t iv e pr o c e s s to c h all e n g e a nd d ete r m i ne w h a t p o r t i on of a

4184j u d g ment, a w a rd , or se tt le m e nt i n a to r t a c t i on i s pr o p e r l y all o c a bl e to

4227me d i c a l e x p en s es a n d , thu s , w h a t p o r t i on o f a p et i t i one r' s s ett l ement m a y b e

4274r e c o v e r ed to r e i m b u r s e the M e d i c ai d li en h e l d b y A H C A . Se c t i on

431840 9 . 9 1 0 ( 17 )( b ) s t a te s :

4335A r e c i p i ent m a y c on t e s t the a mount d e s ig n a ted a s

4364r e c o v e r ed m e d i c a l e x p en s e d a m ag es p a y abl e to the

4397ag en c y p u rs u a nt to the f o r mu l a sp e c i f i ed i n

4424p a r ag r a p h ( 11 )(f ) b y f ili n g a p et i t i on un d er c h a p ter

445712 0 w i th i n 2 1 d ay s a f ter the d a te of p ay ment of

4481f un d s to the ag en c y o r a f ter the d a te of p la c i ng the

4507f u l l a mount of the th i rd - p a r ty b ene f i ts i n the t r u s t

4536a cc ount f o r the b ene f i t of the ag en c y p u r s u a nt to

4562p a r ag r a p h ( a ) . T he p et i t i on s h al l b e f il ed w i th the

4595D i v i s i on of A d m i n i s t r a t iv e H e a r i n g s . F or p u rp o s es

4633of c h a p ter 1 20 , the p ay ment of f un d s to t h e ag en c y

4658or the p l a c ement of the f u l l a mount o f t he

4677th i rd - p a r ty b ene f i ts i n the trust account f o r the

4699benefit of the agency c on s t i t u tes f i n a l ag e n c y

4721a c t i on a nd not i c e the r eo f . Fi n a l o rd er a utho r i ty f or

4751the pr o c e e d i n g s s p e c i f i ed i n t h i s s u b s e c t i on r e s ts

4789w i th the D ivi s i on of Ad m i n i s t r a t iv e H e a r i n g s . T h i s

4824pr o c e d u r e i s the e x c l u s iv e method f or c h a ll en g i ng

4854the a m ount of th i rd - p a r ty benefits payable to

4870the agency . I n o rd er to s u cc e s s f u ll y c h a ll e n g e the

4898a mount p ayabl e to t he ag en c y , the r e c i p i ent

4918mu s t pr o v e, b y c l e a r a nd c on vi n c i ng e v i d en c e, th a t

4951a l e ss er p o r t i on of t h e tot a l r e c o v e r y s hou l d b e

4983all o c a ted a s r e i m b u rs ement f or p a s t a n d f utu r e

5011me d i c a l e x p en s es th a n the a mount c al c u la ted b y

5037the ag en c y p u rs u a nt to the f o r mu l a s et f o r th i n

5064p a r ag r a p h ( 11 )(f ) or th a t M e d i c ai d pr o vi d e d a

5094l e ss er a mount of m e d i c a l a s s i s t a n c e t h a n th a t

5125a s s e r ted b y the ag en c y .

513933. I n s i m p l e t e r m s , i f a qualified P et i t i one r c a n d em o n s t r a te th a t the

5180p o r t i on of a s e t t l ement f ai r l y all o c abl e a s pa y ment f or p a s t me d i c a l e x p e n s es

5228i s l e s s th a n t he a mount the A g en c y s ee ks , then the a moun t P e t i t i o n e r is

5266o b liga ted to p a y to AH CA f or i ts li en w ou l d b e r e d u c e d.

5296A PPLICATION OF THE F EDERAL A NTI - L IEN S TATUTE IN THIS C ASE

531334. Federal law imposes some limits on a state's authority to recover

5325medical expenses paid by Medicaid. One limit is imposed by the federal

5337Medicaid "anti - lien" statute, 42 U.S.C. § 1396p(a)(1) . It provides, in

5350pertinent part, that: "[n]o lien may be imposed against the property of any

5363individual prior to his death on account of medical assistance paid or to be

5377paid on his beha lf under the State plan," except under specified

5389circumstances. 42 U.S.C. § 1396p(a)(1) (emphasis added).

539635. Notably, however, Florida case law addressing the interplay between

5406this federal anti - lien statute and section 409.910 has consistently held that

5419in cases where the Medicaid recipient dies before the settlement of an action

5432for third - party benefits , the federal anti - lien statute does not operate to

5447preempt or negate the applicability of section 409.910(11)(f) . In th ose case s ,

5461the formula under secti on 409.910(11)(f) governs the distribution of benefits

5472recovered from a third - party . Goheagan v. Perkins , 197 So. 3d 112 (Fla. 4th

5488DCA 2016) and Estate of Hernandez v. Ag . for Health Care Admin . , 190 So.

55043d 139 (Fla. 3d DCA 2016) .

551136. This principle of Med icaid recovery law was recently reaffirmed by

5523the First District Court of Appeal in Cabrera v. State of Florida , Agency for

5537Health Care Administration , 2021 WL 115232 8 ( Mar . 2 6 , 2021 ) . Under very

5554similar facts involving a tragic accident where the victim d ied before the

5567underlying wrongful death case was settled, the court announced several

5577controlling principles that drive the outcome of this case as well.

558837. First, the court determined:

5593While nothing in section 409.910(17)(b) expressly

5599prohibits a deceas ed Medicaid recipient or her

5607personal representative from challenging the

5612amount payable to the Agency, the statute

5619unambiguously states that a recipient may

5625challenge the amount payable Ñ[i]f federal law

5632limits the agency to reimbursement from the

5639recover ed medical expense damages.Ò Federal law

5646did not limit the Agency to reimbursement in the

5655present case.

565738. The court added:

5661Medicaid is a joint federal - state cooperative

5669program, and participating states must comply

5675with certain statutory requir ements. Eady, 279 So.

56833d at 1254 Ï 55 (citing Giraldo v. Agency for Health

5694Care Admin. , 248 So. 3d 53 (Fla. 2018)). Among

5703those requirements are the anti - lien provision (42

5712U.S.C. § 1396p(a)), the anti - recovery provision (42

5721U.S.C. § 1396p(b)), and the force d - assignment

5730provisions (42 U.S.C. § 1396k) of the Federal

5738Medicaid Act. As detailed below, none of these

5746limits the Agency's reimbursement for purposes of

5753section 409.910(17)(b) when a Medicaid recipient is

5760deceased.

5761(emphasis added) .

576439. Of particular importance to this case, the court unequivocally stated:

5775The federal anti - lien provision states, Ñ[n]o lien

5784may be imposed against the property of any

5792individual prior to his death on account of medical

5801assistance paid or to be paid on his behalf under

5811t he State plan ....Ò 42 U.S.C. £ 1396(p)(a)(1) (2017).

5821Thus, by its express terms, the Medicaid Act's anti -

5831lien provision applies only to living Medicaid

5838recipients . Estate of Hernandez v. Agency for

5846Health Care Admin ., 190 So. 3d 139, 143 Ï 46 (Fla.

58583d DCA 2 016) (citing Austin v. Capital City Bank ,

5868353 P.3d 469 (Kan. Ct. App. 2015)).

5875(emphasis added) .

587840. After analyzing both the federal anti - lien and forced - assignment

5891provisions, and concluding that neither applied, the Cabrera court affirmed

5901the administ rative law judgeÔs dismissal of the petition challenging A HC AÔs

5914Medicaid lien and concluded:

5918Nothing in the federal anti - lien, anti - recovery, or

5929forced - assignment provisions apply to limit the

5937Agency's reimbursement or allow Appellant to

5943challenge the amo unt of medical expenses

5950allocated under the formula in the present case. To

5959hold otherwise would contradict statutory

5964provisions and clear legislative intent: Ñit is the

5972intent of the Legislature that Medicaid be repaid in

5981full and prior to any other perso n, program, or

5991entity. Medicaid is to be repaid in full from, and to

6002the extent of, any third - party benefits, regardless

6011of whether a recipient is made whole or other

6020creditors paid.Ò

6022§ 409.910(1), Fla. Stat. (2017).

602741. As outlined above, because this case involves the recover y and

6039settlement of third - party benefits after the death of the Medicaid recipient,

6052Mr. Sharpe, section 409.910(17)(b) does not afford Petitioner the right to

6063challenge Respondent's recovery pursuant to the formula AHCA utilized

6072f ound in section 409.910(11)(f) . Cabrera , 2021 WL 1152328 (Mar. 26, 2021) .

608642. The parties stipulated that Petitioner was entitled to contest the

6097amount payable to A HC A under the formula found in section 409.910(11)(f).

6110JPHS, p . 7.

611443. However, under the c ircumstances of this case and due to Mr.

6127SharpeÔs death prior to the settlement, his challenge, regrettably, fails since

6138his challenge ultimately relies on the Medicaid ActÔs anti - lien provisions,

6150which only apply to living Medicaid recipients. Cabrera , 20 21 WL 1152328

6162(Mar. 26, 2021) .

616644. To the extent the partiesÔ stipulations seek to circumvent or ignore

6178the application of Cabrera , their agreement must be rejected .

618845. There is no question in the mind of the undersigned that Mr. SharpeÔs

6202family ha s suff ered, and continue s to suffer, a tragic loss .

621646. T he outcome of this Final Order may seem unfair . However , the

6230Florida Legislature has clearly stated that equity cannot serve as the basis

6242for reducing a Medicaid lien. § 409.910(6)(a) and (b)2., Fla. Stat.

625347. As compelling as the circumstances of this proceeding may be, the

6265undersigned is constrained and obliged t o follow the law. Here, the

6277applicable law, discussed in detail above, dictates that pursuant to

6287section 409.910(11)(f), Respondent is entitled to recover $ 29,353.30 in third -

6300party benefits paid to Petitioner through settlement of his action in tort.

6312O RDER

6314Based on the foregoing Findings of Fact and Conclusions of Law, it is

6327O RDERED A ND A DJUDGED that t he Petition to Determine Medicaid Lien filed

6342by Angela Sharpe , as Personal Representative of the Estate of Thomas

6353Kenneth Sharpe , deceased, is dismissed with prejudice , and Respondent is

6363entitled to recover $29,353.30 under the formula outlined in section

6374409.910(11)(f) .

6376D ONE A ND O RDERED this 30th d ay of April , 2021 , in Tallahassee, Leon

6392County, Florida.

6394S

6395R OBERT L. K ILBRIDE

6400Administrative Law Judge

64031230 Apalachee Parkway

6406Tallahassee, Florida 32399 - 3060

6411(850) 488 - 9675

6415www.doah.state.fl.us

6416Filed with the Clerk of the

6422Division of Administrative Hearings

6426this 30th day of April , 2021 .

6433C OPIES F URNISHED :

6438Alexander R. Boler, Esquire Shena L. Grantham, Esquire

6446Suite 300 Agency for Health C are Administration

64542073 Summit Lake Drive Mail Stop 3

6461Tallahassee, Florida 32317 2727 Mahan Drive

6467Tallahassee, Florida 32308

6470Darryn L. Silverstein, Esquire

6474Silverstein, Silverstein James D. Varnado, General Counsel

6481and Silverstein, P.A. Agency for Health C are Administration

6490Suite 504 2727 Mahan Drive, Mail Stop 3

649820801 Biscayne Boulevard Tallahassee, Florida 32308

6504Aventura, Florida 33180

6507Simone Marstiller, Secretary

6510Richard J. Shoop, Agency Clerk Agency for Health C are Administration

6521Agency for Health C are Administration 2727 Mahan Drive, Mail Stop 1

65332727 Mahan Drive, Mail Stop 3 Tallahassee, Florida 32308

6542Tallahassee, Florida 32308

6545Thomas M. Hoeler, Esquire

6549Agency for Health C are Administrati on

65562727 Mahan Drive, Mail Stop 3

6562Tallahassee, Florida 32308

6565N OTICE O F R IGHT T O J UDICIAL R EVIEW

6577A party who is adversely affected b y this Final Order is entitled to judicial

6592review pursuant to section 120.68, Florida Statutes. Review proceedings are

6602governed by the Florida Rules of Appellate Procedure. Such proceedings are

6613commenced by filing the original notice of administrative appe al with the

6625agency clerk of the Division of Administrative Hearings within 30 days of

6637rendition of the order to be reviewed, and a copy of the notice, accompanied

6651by any filing fees prescribed by law, with the clerk of the d istrict c ourt of

6668a ppeal in the a ppellate district where the agency maintains its headquarters

6681or where a party resides or as otherwise provided by law.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 11/23/2021
Proceedings: BY ORDER OF THE COURT: Appeal dismissed pursuant to Florida Rule of Appellate Procedure 9.350(b) filed.
PDF:
Date: 11/23/2021
Proceedings: Notice of Voluntary Dismissal with Prejudice filed.
PDF:
Date: 11/05/2021
Proceedings: Agreed Motion for Extension filed.
PDF:
Date: 10/06/2021
Proceedings: Agreed Motion for Extension of Time/Agreed Motion for Leave to File Brief Out of Time filed.
PDF:
Date: 09/15/2021
Proceedings: BY ORDER OF THE COURT: The show cause order of August 23, 2021, is hereby discharged.
PDF:
Date: 09/10/2021
Proceedings: Index, Record, and Certificate of Record sent to the First District Court of Appeal.
PDF:
Date: 08/23/2021
Proceedings: BY ORDER OF THE COURT: Appellant has failed to timely file the record on appeal. Within 20 days from the date of this order, appellant shall ensure the filing of the record or show cause why this appeal should not be dismissed for failure to obey the rules and orders of this Court. If the record is not filed or appellant fails to file a response within the time allowed, this appeal shall be dismissed without further notice or opportunity to be heard.
PDF:
Date: 08/09/2021
Proceedings: Notice of Agreed Extension of Time to Serve Initial Brief filed.
PDF:
Date: 06/30/2021
Proceedings: Invoice for the record on appeal mailed.
PDF:
Date: 06/30/2021
Proceedings: Index (of the Record) sent to the parties of record.
PDF:
Date: 06/21/2021
Proceedings: Docketing Statement & Notice of Appearance (Brett C. Powell).
PDF:
Date: 06/01/2021
Proceedings: Acknowledgment of New Case, First DCA Case No. 1D21-1615 filed.
PDF:
Date: 06/01/2021
Proceedings: Notice of Administrative Appeal filed and Certified copy sent to the First District Court of Appeal this date.
PDF:
Date: 05/31/2021
Proceedings: Notice of Administrative Appeal filed.
PDF:
Date: 04/30/2021
Proceedings: DOAH Final Order
PDF:
Date: 04/30/2021
Proceedings: Final Order (hearing held March 9, 2021). CASE CLOSED.
PDF:
Date: 04/19/2021
Proceedings: Respondent's Proposed Final Order filed.
PDF:
Date: 04/16/2021
Proceedings: (Petitioner's Proposed) Final Order filed.
PDF:
Date: 04/08/2021
Proceedings: Notice of Filing Transcript.
Date: 04/08/2021
Proceedings: Transcript of Proceedings (not available for viewing) filed.
PDF:
Date: 03/29/2021
Proceedings: Order on Legal Issues to Address.
Date: 03/09/2021
Proceedings: CASE STATUS: Hearing Held.
PDF:
Date: 03/08/2021
Proceedings: Petitioner's Notice of Filing filed.
Date: 03/08/2021
Proceedings: Petitioner's Notice of Filing (Proposed Exhibits, not available for viewing) filed.
PDF:
Date: 03/01/2021
Proceedings: Joint Pre-Hearing Stipulation filed.
PDF:
Date: 03/01/2021
Proceedings: Joint Pre-Hearing Stipulation filed.
PDF:
Date: 02/12/2021
Proceedings: Order Granting Joint Motion to Dismiss, Severing Case, and Closing File (Case No. 21-0079MTR is severed and closed).
PDF:
Date: 02/10/2021
Proceedings: Petitioner and Respondent Sunshine State Health Plan, Inc. a/k/a Sunshine Health's Joint Motion to Dismiss the Petition filed.
PDF:
Date: 02/04/2021
Proceedings: Amended Notice of Hearing by Zoom Conference (hearing set for March 9, 2021; 9:00 a.m., Eastern Time).
PDF:
Date: 02/03/2021
Proceedings: Order of Consolidation (DOAH Case Nos. 21-0052, 21-0079).
PDF:
Date: 02/03/2021
Proceedings: Joint Response to Order to Show Cause and Motion to Consolidate filed.
PDF:
Date: 02/01/2021
Proceedings: Amended Order to Show Cause.
PDF:
Date: 02/01/2021
Proceedings: Order to Show Cause.
PDF:
Date: 01/15/2021
Proceedings: Notice of Hearing by Zoom Conference (hearing set for March 9, 2021; 1:30 p.m., Eastern Time).
PDF:
Date: 01/15/2021
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 01/15/2021
Proceedings: Joint Response to Initial Order and Procedural Order filed.
PDF:
Date: 01/07/2021
Proceedings: Procedural Order.
PDF:
Date: 01/07/2021
Proceedings: Initial Order.
PDF:
Date: 01/07/2021
Proceedings: Letter to General Counsel from L. Sloan (forwarding copy of petition).
PDF:
Date: 01/06/2021
Proceedings: Petition to Determine Amount Payable to the Agency for Health Care Administration in Satisfaction of Medicaid Lien filed.

Case Information

Judge:
ROBERT L. KILBRIDE
Date Filed:
01/06/2021
Date Assignment:
01/07/2021
Last Docket Entry:
11/23/2021
Location:
Aventura, Florida
District:
Southern
Agency:
Agency for Health Care Administration
Suffix:
MTR
 

Counsels

Related Florida Statute(s) (4):