Waters v. Farmers Texas County Mut. Ins. Co., Civ. A. No. H-92-942.
| Decision Date | 06 August 1992 |
| Docket Number | Civ. A. No. H-92-942. |
| Citation | 797 F. Supp. 575 |
| Parties | Billy Albert WATERS, Sr., ANF, et al., Plaintiffs, v. FARMERS TEXAS COUNTY MUTUAL INSURANCE COMPANY, Defendant. |
| Court | U.S. District Court — Southern District of Texas |
David Heller, Stolarhoff & Heller, Houston, Tex., for plaintiffs.
John R. Shrode, Perry Archer & Associates, Houston, Tex., for Farmers Texas County Mut. Ins. Co.
Robert T. Wallace, Houston, Tex., for Diane Owens.
Samuel G. Longoria, Asst. U.S. Atty., Houston, Tex., for Louis W. Sullivan, M.D.
The defendant, Louis W. Sullivan, M.D., Secretary of the United States Department of Health and Human Services, has filed a motion for summary judgment seeking to establish the Secretary's claim for $29,121.66 of the escrowed funds arising out of an uninsured motorist policy pursuant to Title 42 U.S.C. § 1395y(b)(2). It is the Court's opinion that the motion is meritorious and should be granted.
FACTUAL BACKGROUND:
On or about June 2, 1990, Annie Searles deceased, was injured in an automobile accident while a passenger in a vehicle insured by Farmers Texas County Mutual Insurance Company. In addition to the Decedent's damages, Billy Albert Waters, Sr. and Sue Ellen Waters assert a claim for Billy Albert Waters, Jr. Marvin Eugene Searles and Lee Arthur Searles assert separate claims as well.
Because these individual claims as well as that of the Secretary's sought disbursement of the same funds, Farmers escrowed the policy limits of $40,000 in the registry of the Court.
DISCUSSION:
It is undisputed that the policy of insurance covers injuries that a party may claim arising out of an automobile accident and that the injuries sustained by the Decedent were covered. It is also undisputed that the policy limits are $20,000 per person and $40,000 per occurrence for bodily injury. It does not appear to the Court to be disputed that the Secretary is entitled to assert his claim for reimbursement and entitled to it pursuant to 42 U.S.C. § 1395y(b)(2).
Title 42 U.S.C. § 1395y(b) reads in pertinent part:
Payment ... may not be made with respect to any item or service to the extent that payment has been made ... under an automobile or liability insurance policy ... and the United States may join or intervene in any action related to the events that gave rise to the need for such time or service. The United States shall be subrogated ... to any right of an individual or any other entity to payment with respect to such item or service. ...
It is clear that the statute provides for reimbursement of Medicare payments in this circumstance. Case law also supports the Secretary's position that the Medicare claim is paramount to all other claims. See United States v. Lorenzetti, 467 U.S. 167, 104 S.Ct. 2284, 81 L.Ed.2d 134 (1984); see also Rybicki v....
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US v. Geier, 92-C-0593-C.
...Johnson, NO. CIV.A. 91-2357, 1992 WL 300769*, 1992 U.S. Dist. LEXIS 15282 *4 (E.D.La. October 5, 1992); Waters v. Farmers Texas County Mut. Ins. Co., 797 F.Supp. 575 (S.D.Tex. 1992). However, defendant Hartford Insurance contends that its subrogation rights arise from its contractual relati......
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Waters v. Farmers Texas County Mut. Ins. Co.
...court's summary judgment in favor of the Secretary of the United States Department of Health and Human Services ("the government"), 797 F.Supp. 575. The district court held that the government is entitled by statute to receive Medicare reimbursement from a private insurance carrier in an am......