| On May 24, 2010 the Superior Court of New | | | | The court, interestingly, reviewed a prior ruling in |
| Jersey, Appellate Division, decided the case of Ilse | | | | which it was found that the statute does not |
| Theresa Jackson v. Hudson Court, LLC. At issue | | | | apply to reimbursable benefits paid by Medicaid by |
| was a request by the plaintiff for a court ordered | | | | likening the reimbursement principles to Medicare |
| allocation of settlement funds in order to avoid | | | | liens. Stating that Medicare "has a nearly unqualified |
| payment of a Medicare lien. | | | | right to reimbursement" the court found that the |
| After settlement of the underlying case, the | | | | collateral source rule allows a personal injury |
| plaintiff sought to obtain a court order designating | | | | settlements to include recovery of medical |
| that the settlement proceeds were for pain and | | | | expenses paid for by Medicare. |
| suffering or for other amounts not related to | | | | The court also took the opportunity to point to |
| medical services, notwithstanding the fact that | | | | prior federal case law which established where |
| conditional payments had been made by Medicare. | | | | state collateral source rules "frustrate" MSP |
| Ms. Jackson's contention was based upon state | | | | reimbursement rights, they are pre-empted. |
| collateral source doctrine which forecloses | | | | For purposes of MSP compliance, it would appear |
| recovery of expenses received (or to which she | | | | that, at least in New Jersey and Jackson v. |
| was entitled) in duplication of her recovery. | | | | Hudson Court, LLC, Medicare liens cannot be |
| In short, she argued that no plaintiff should have | | | | avoided by hiding behind the collateral source rule |
| to reimburse Medicare in a personal injury claim | | | | or by a creative allocation of settlement funds. |
| because Medicare's lien would be satisfied from | | | | The court there recognized not only the pre |
| funds not recovered for medical expenses. | | | | eminence of the MSP statute as compared to |
| Basically, she sought the court's cooperation in | | | | state law but also advised the tort industry that |
| categorizing her settlement proceeds to avoid | | | | they would not be complicit in rulings that avoid |
| Medicare lien repayment. | | | | Medicare's recovery interests. |
| Collateral Source Statute | | | | |