The Eleventh Circuit ruled earlier this month in the case Bradley v. Sebelius, that Medicare is not entitled to proceeds from wrongful death settlements.
In 2005, Carvonella Bradley settled a wrongful death claim against the nursing home that housed her father Charles Burke and his ten surviving children. The case resolved prior to the Bradley family having to file a lawsuit for $52,500, the insurance policy limits. The estate notified the Health and Human Services of the settlement and subsequent probate hearing.
At the hearing, the court awarded $787.50 to the HHS. The agency challenged the probate court's decision arguing the that Medicare Secondary Payer Manual would provide the superseding law.
The HHS then demanded that the Bradley estate pay over $22,000.00. Bradley paid the agency, but ultimately appealed to the federal district court. The court of appeals reviewed the case to determine, "Whose property is the settlement?"
The court disagreed with the HHS, finding that state law, rather than the Medicare Secondary Payer Manual, was controlling. "Under Florida law, any claim of the estate is separate and distinct from the claim of a survivor.... All loss of consortium or companionship recoveries are the property of the person who incurred the loss. Not the secretary of HHS," wrote Judge Hill.
Families bringing wrongful death actions will no longer have to go through a trial to get these benefits, thanks to the Bradley family and their lawyers. If you believe an immediate family member has passed due to wrongful behavior on the part of their nursing home or healthcare workers, it is important for you to contact an attorney as soon as possible.
