HF 3540

as introduced - 89th Legislature (2015 - 2016) Posted on 03/23/2016 11:19am

A bill for an act
relating to human services; modifying notification requirements to the
Department of Human Services of possible monetary claims; amending
Minnesota Statutes 2014, section 256B.056, subdivision 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 256B.056, subdivision 9, is amended to
read:

Subd. 9.

Notice.

new text begin (a) new text end The state agency must be given notice of monetary claims
against deleted text begin a person, entity, or corporation that may be liable to pay all or part of the cost of
medical care deleted text end new text begin any potentially liable party new text end when the state agency has paid or becomes
liable for the cost of deleted text begin that deleted text end new text begin medical new text end care. Notice must be given according to deleted text begin paragraphs
(a) to (d) deleted text end new text begin this subdivision new text end .

new text begin (b) For purposes of this subdivision, the following definitions apply:
new text end

new text begin (1) "notify" means written notice delivered by United States mail, or by service in
any manner allowed under Minnesota Rules of Civil Procedure;
new text end

new text begin (2) "potentially liable party" means any natural person, entity, corporation, or
insurer that may be liable to pay all or part of the costs of medical care provided to an
injured person; and
new text end

new text begin (3) "state agency" means the Department of Human Services or the state as defined
in subdivision 6.
new text end

deleted text begin (a) deleted text end new text begin (c) new text end An applicant for medical assistance shall notify the state or local agency of
any possible claims when the applicant submits the application. A recipient of medical
assistance shall notify the state or local agency of any possible claims when those claims
arise.

deleted text begin (b) deleted text end new text begin (d) new text end A person providing medical care services to a recipient of medical assistance
shall notify the state agency when the person has reason to believe that a third party may
be liable for payment of the cost of medical care.

deleted text begin (c) deleted text end new text begin (e) new text end A party to a claim that may be assigned to the state agency under this section
shall notify the state agency of its potential assignment claim in writing at each of the
following stages of a claim:

(1) deleted text begin when a claim is filed; deleted text end new text begin when any claim is submitted or asserted;
new text end

(2) new text begin when a claim is filed; new text end

new text begin
(3) new text end when an action is commenced; and

deleted text begin (3) deleted text end new text begin (4) new text end when a claim is concluded by payment, award, judgment, settlement, or
otherwise.

new text begin (f) For purposes of this paragraph, a party to a claim or party making a claim
includes an injured person seeking damages or the person's legal representative. Whenever
a party to a claim that may be assigned to a state agency under this section makes a claim
for monetary damages against a potentially liable party:
new text end

new text begin (1) the party making the claim must notify the state agency that has or may have
an interest in the recovery of damages to satisfy money that the state agency has paid for
medical care or medically related care as soon as practicable after the party making the
claim knows that the state agency has or may have an interest in the recovery;
new text end

new text begin (2) the party making the claim must notify the potentially liable party that a state
agency has or may have an interest in the recovery of damages;
new text end

new text begin (3) the state agency that has or may have an interest in the recovery of damages must
notify any potentially liable party that it has or may have an interest in the recovery; and
new text end

new text begin (4) each potentially liable party must notify the party making the claim that a state
agency has made or asserted a claim for recovery.
new text end

new text begin (g) Every party involved in any stage of a claim under this subdivision is required to
notify the state agency at that stage of the claim. When one party to the claim notifies
the state agency at the stage, every other party to the claim is deemed to have provided
the required notice for that stage of the claim. If the required notice under this paragraph
is not provided to the state agency, all parties to the claim are deemed to have failed to
provide the required notice. For purposes of this paragraph, a party includes the injured
natural person, the injured natural person's legal representative, and any person or legal
entity against whom a claim or legal cause of action is asserted.
new text end

new text begin (h) Whenever an action or claim is settled or resolved, any party making payment
to any claimant, plaintiff, or person shall verify in writing and notify the state agency
that the interest of the state agency shall be satisfied. If a party making payment fails to
provide notice and verify in writing satisfaction of the interest of the state agency after
the party making payment received notice of the state agency's claim, the party making
payment shall be responsible for payment to the state agency of the full amount of the
claim asserted by the state agency.
new text end

deleted text begin (d) Every party involved in any stage of a claim under this subdivision is required to
provide notice to the state agency at that stage of the claim. However, when one of the
parties to the claim provides notice at that stage, every other party to the claim is deemed
to have provided the required notice for that stage of the claim. If the required notice
under this paragraph is not provided to the state agency, all parties to the claim are deemed
to have failed to provide the required notice. A party to the claim includes the injured
person or the person's legal representative, the plaintiff, the defendants, or persons alleged
to be responsible for compensating the injured person or plaintiff, and any other party
to the cause of action or claim, regardless of whether the party knows the state agency
has a potential or actual assignment claim.
deleted text end