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Geico General Insurance Co. v. Department of Navy Medical Care Recovery Unit

United States District Court, D. Nebraska

October 13, 2016

GEICO GENERAL INSURANCE COMPANY, Plaintiff,
v.
DEPARTMENT OF THE NAVY MEDICAL CARE RECOVERY UNIT, et al., Defendants.

          MEMORANDUM AND ORDER

          Richard G. Kopf Senior United States District Judge.

         This is 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.

         I. STATEMENT OF FACTS

         For 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 brief:

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, ¶ 17).
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., ¶¶ 5-9).
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 ...

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