State Employee Health Lien: No Cap Under Wrongful Death Statute

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. § 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 occurring on or after October 1, 2006. The Plan is still limited 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