HARRY HUGHES, Governor                              1327

Annotated Code of Maryland

(1971 Replacement Volume and 1979 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 43 - Health

42C.

(A)  In any claim for benefits by an indigent or
medically indigent person, where the person has a cause of
action against any other person, the State Department of
Health and Mental Hygiene shall be subrogated against the
other person to the extent of any payments made by the State
Department of Health and Mental Hygiene on behalf of the
indigent or medically indigent person, resulting from the
occurrence which constituted the basis for the action
against the other person.

(B)  AFTER THE DEDUCTION OF APPLICABLE ATTORNEY FEES
AND LITIGATION COSTS, ANY FUNDS RECEIVED BY AN INDIGENT OR
MEDICALLY INDIGENT PERSON, HIS ATTORNEY, OR HIS GUARDIAN OR
PERSONAL REPRESENTATIVE, BY MEANS OF JUDGMENT, AWARD, OR
SETTLEMENT OF THE CAUSE OF ACTION, SHALL BE HELD FOR THE
BENEFIT OF THE STATE DEPARTMENT OF HEALTH AND MENTAL HYGIENE
TO THE EXTENT INDICATED IN SUBSECTION (A) OF THIS SECTION.

(C)  IF, AFTER BEING NOTIFIED IN WRITING OF A
SUBROGATION CLAIM AND POSSIBLE LIABILITY UNDER THIS SECTION,
AN INDIGENT OR MEDICALLY INDIGENT PERSON, HIS ATTORNEY, OR
HIS GUARDIAN OR PERSONAL REPRESENTATIVE DISPOSES, WITHOUT
THE WRITTEN APPROVAL OF THE DEPARTMENT, OF FUNDS THAT ARE
REQUIRED TO BE HELD FOR THE BENEFIT OF THE DEPARTMENT UNDER
THIS SECTION, THAT PERSON SHALL BE LIABLE TO THE DEPARTMENT
FOR ANY AMOUNT THAT, AS A RESULT OF THE DISPOSITION OF THE
FUNDS, IS NOT RECOVERABLE BY THE DEPARTMENT.

(D)  THE DEPARTMENT MAY COMPROMISE, SETTLE, AND RELEASE
A SUBROGATED CLAIM IF THE DEPARTMENT DETERMINES THAT
COLLECTION WOULD RESULT IN SUBSTANTIAL HARDSHIP ON THE
INDIGENT OR MEDICALLY INDIGENT PERSON OR, IN A WRONGFUL
DEATH ACTION, ON THE SURVIVING DEPENDENTS OF THE DECEASED.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.

Approved May 6, 1980.

CHAPTER 403