LD 2676
pg. 14
Page 13 of 23 An Act to Repeal Certain Inactive Boards and Commissions and to Amend Certain L... Page 15 of 23
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LR 4079
Item 1

 
will be cost-effective, the reasonable value of benefits provided
to the extent that there are proceeds available for such recovery
after the deduction of reasonable attorney's fees and litigation
costs from the gross award or settlement. In determining whether
collection will be cost-effective, the commissioner shall consider
all factors that diminish potential recovery by the department,
including but not limited to questions of liability and comparative
negligence or other legal defenses, exigencies of trial that reduce
a settlement or award in order to resolve the recipient's claim and
limits on the amount of applicable insurance coverage that reduce
the claim to the amount recoverable by the recipient. The
department's statutory lien may not be reduced to reflect an
assessment of a pro rata share of the recipient's attorney's fees
or litigation costs. The commissioner may compromise, or settle
and execute a release of, any claim or waive any claim, in whole or
in part, if the commissioner determines the collection will not be
cost-effective or that the best possible outcome requires
compromise, release or settlement.

 
Sec. 95. 22 MRSA §14, sub-§2-A, as amended by PL 1991, c. 9, Pt. N,
§2, is further amended to read:

 
2-A. Assignment of rights of recovery. The receipt of
benefits under the Medicaid program administered by the
department pursuant to the United States Social Security Act,
Title XIX, or under the Maine Health Program, section 3189,
constitutes an assignment by the recipient or any legally liable
relative to the department of the right to recover from 3rd
parties for the medical cost of injury, disease, disability or
similar occurrence for which the recipient receives medical
benefits. The department's assigned right to recover is limited
to the amount of medical benefits received by the recipient and
does not operate as a waiver by the recipient of any other right
of recovery against a 3rd party that a recipient may have.

 
The recipient is also deemed to have appointed the commissioner
as the recipient's attorney in fact to perform the specific act
of submitting claims to insurance carriers or endorsing over to
the department any and all drafts, checks, money orders or any
other negotiable instruments connected with the payment of 3rd-
party medical claims.

 
Sec. 96. 22 MRSA §14, sub-§§2-B and 2-C, as amended by PL 1991, c. 9,
Pt. N, §3, are further amended to read:

 
2-B. Direct reimbursement to health care provider. When an
insured is eligible under the Medicaid program administered by
the Department of Human Services, pursuant to the United States
Social Security Act, Title XIX, or under the Maine Health


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