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Ninth Circuit Disagrees with Bradley v. Sebelius - Farmers Insurance Exchange v. Leona Forkey

Posted date in Jason D. Lazarus, J.D., LL.M., MSCC Liens, Medicare, Medicare Secondary Payer Act

Forkey was a wrongful death case where the surviving wife brought suit to recover insurance proceeds from a UM policy issued by Farmers.  Medicare had paid for medical items and services related to the accident prior to Forkey passing away.  The Department of Health and Human Services made a claim against the UM policy.  The UM carrier was granted a Motion for Interpleader and for Discharge with the UM proceeds deposited with the court.    The Farmers Insurance Exchange v. Leona Forkey 2010 U.S. Dist. LEXIS 137716 decision recently came out which gave Medicare priority over the death beneficiary’s claims reaching the opposite result from Bradley.  This isn’t surprising as it relies upon a previous precedent out of the 9th from 1995.  See Zinman v. Shalala, 67 F.3d 841 (9th Cir. 1995)The Forkey court gave deference to the Agency’s interpretation of the MSP found in the Medicare Secondary Payer Manual unlike in the Bradley case. 

The 8thCircuit issued a decision in 2009 that reaches the same outcome as Forkey and Zinman.  See Mathis v. Leavit, 554 F.3d 731(8th Cir., January 30, 2009).   So we have the 11th finding that non-Medicare beneficiary’s claims take precedence over Medicare’s claim while the 8th and 9th come out the opposite way.  Since there is a split in the circuits on the issue, it may ultimately go to the US SCT.  If it does, let’s hope the US SCT agrees with our 11th Circuit.