State Employee Health Lien: no cap under Wrongful Death Statute
December 20, 2006
When the changes to the State Employee Health Plan lien were enacted on October 1, 2006, the Legislature specifically exempted the SEHP from the $4,500 cap that is normally placed on medical providers collecting from wrongful death settlements.
Specifically, the Wrongful death Act (N.C.G.S. ยง 28A-18-2(a) ) was amended to say:
The limitations on recovery for hospital and medical expenses under this subsection do not apply to subrogation rights exercised pursuant to G.S. 135-40.13A.
This subsection becomes effective for deaths occuring on or after October 1, 2006. The Plan is still limted to recovering no more than 50% of the net settlement after "reasonable collection costs" are subtracted from the total settlement. "Reasonable" is presumed to be 33.3% by SEHP.
Chris Nichols
http://www.NicholsTrialLaw.com
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