Recovery of medical assistance from third party -- Lien -- Notice -- Action -- Compromise or waiver -- Recipient's right to action protected.

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  • (1)
    • (a) Except as provided in Subsection (1)(c), if the department provides or becomes obligated to provide medical assistance to a recipient that a third-party is obligated to pay for, the department may recover the medical assistance directly from the third-party.
    • (b)
      • (i) A claim under Subsection (1)(a) or Section 26-19-201 to recover medical assistance provided to a recipient is a lien against any proceeds payable to or on behalf of the recipient by the third-party.
      • (ii) The lien described in Subsection (1)(b)(i) has priority over all other claims to the proceeds, except claims for attorney fees and costs authorized under Subsection 26-19-403(2)(c)(ii).
    • (c)
      • (i) The department may not recover medical assistance under Subsection (1)(a) if:
        • (A) the third-party is obligated to pay the recipient for an injury to the recipient's child that occurred while the child was in the physical custody of the child's foster parent;
        • (B) the child's injury is a physical or mental impairment that requires ongoing medical attention, or limits activities of daily living, for at least one year;
        • (C) the third-party's payment to the recipient is placed in a trust, annuity, financial account, or other financial instrument for the benefit of the child; and
        • (D) the recipient makes reasonable efforts to mitigate any other medical assistance costs for the recipient to the state.
      • (ii) The department is responsible for any repayment to the federal government related to the medical assistance the department is prohibited from recovering under Subsection (1)(c)(i).
  • (2)
    • (a) The department shall mail or deliver written notice of the department's claim or lien to the third-party at the third-party's principal place of business or last-known address.
    • (b) The notice shall include:
      • (i) the recipient's name;
      • (ii) the approximate date of illness or injury;
      • (iii) a general description of the type of illness or injury; and
      • (iv) if applicable, the general location where the injury is alleged to have occurred.
  • (3) The department may commence an action on the department's claim or lien in the department's name, but the claim or lien is not enforceable as to a third-party unless:
    • (a) the third-party receives written notice of the department's claim or lien before the third-party settles with the recipient; or
    • (b) the department has evidence that the third party had knowledge that the department provided or was obligated to provide medical assistance.
  • (4) The department may:
    • (a) waive a claim or lien against a third party in whole or in part; or
    • (b) compromise, settle, or release a claim or lien.
  • (5) An action commenced under this section does not bar an action by a recipient or a dependent of a recipient for loss or damage not included in the department's action.
  • (6) Except as provided in Subsection (1)(c), the department's claim or lien on proceeds under this section is not affected by the transfer of the proceeds to a trust, annuity, financial account, or other financial instrument.




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