United States District Court, D. Nebraska
MEMORANDUM AND ORDER
Richard G. Kopf Senior United States District Judge.
an uncontested interpleader action involving the proceeds of
an automobile liability policy issued by Plaintiff, GEICO
General Insurance Company. The proceeds of $100, 000.00 have
been paid into court, and GEICO and its insured have been
discharged from any further liability. See Order
entered on April 1, 2016 (Filing 14); Receipt and
Notice of Deposit dated April 14, 2016 (Filing 36).
Only two Defendants, the Department of the Navy, Medical Care
Recovery Unit (Navy), and the Centers for Medicare &
Medicaid Services (CMS), have claimed entitlement to the
proceeds. In moving for summary judgment, Navy and CMS have
stipulated that CMS should receive $93, 000.00 of the
interpleaded funds, that Navy should receive $7, 000.00, and
that any earned interest should be divided proportionately.
CMS's and Navy's motion for summary judgment will be
granted and a final judgment will be entered accordingly.
STATEMENT OF FACTS
purposes of the summary judgment motion, the court finds
there is no genuine dispute as to the following material
facts, as set forth in Navy's and CMS's supporting
1. On November 26, 2013, Cecil Shaw was operating a motor
vehicle in Adams County, Nebraska when he had a medical event
leading to an automobile accident. (Filing 1-1,
2. At the time of the accident, the vehicle operated by Cecil
Shaw was insured by GEICO and contained personal injury
coverage in the amount of $100, 000 per person. (Filing
1-1, ¶ 18).
3. June Shaw, an occupant in the vehicle, sustained injuries
as a result of the accident, and received medical treatment
at various medical providers in Nebraska. (Filing
1-1, ¶ 19)
4. June Shaw was both a Medicare and Tricare beneficiary.
(Declaration of John P Hannigan [Filing 43-1],
¶ 5 (“Hannigan Decl. ¶___”));
(Declaration of David P. Swanson [Filing 43-2],
¶ 7 (“Swanson Decl. ¶___)).
5. As a Medicare beneficiary, June Shaw was entitled to
conditional payment of covered items and services provided
under the Medicare program. (Hannigan Decl., ¶ 5).
6. The Medicare reimbursement summary reflects conditional
expenditures by Medicare to providers of services for the
accident related treatment to June Shaw in the amount of
$130, 869.90 (Hannigan Decl., ¶ 6, Exhibit A).
7. Similarly, as a Tricare beneficiary, and under the facts
of this case, June Shaw was entitled to payment of
hospital/medical care and treatment for which the Government
maintains an independent right to recover pursuant to 42
U.S.C. § 2651, et seq. (Swanson Decl., ¶¶
8. The Tricare payment log reflects expenditures by Tricare
to providers of services for the accident related treatment
to June Shaw in the amount of $10, 060.44. (Swanson Decl.,
¶10, Exhibit A).
9. GEICO commenced a Complaint in Interpleader in the
District Court of Webster County, Nebraska seeking to pay its
personal injury limits of coverage into the court for
safekeeping, while allowing third parties claiming an
interest in the policy proceeds to maintain a claim. GEICO
named various Defendants, including the Department of the
Navy, Medical Care Recovery Unit, and the Centers for
Medicare & Medicaid Services. (Filing 1-1).
10. The Navy and CMS removed the State court action to this
Court on February 1, 2016. (Filing 1).
11. On March 9, 2016, the Navy and CMS filed an Answer to the
Interpleader both seeking statutory reimbursement from the
interpleaded funds for claims paid on behalf of June M. Shaw,
Deceased. (Filing 9).
12. CMS seeks reimbursement in the amount of $130, 869.90
pursuant to the Medicare Secondary Payer (MSP) statute.
See 42 ...