PARRIS N. GLENDENING, Governor

Ch. 586

(1)      6 MONTHS AFTER THE FIRST APPOINTMENT OF A PERSONAL
REPRESENTATIVE; OR

(2)      2 MONTHS AFTER THE PERSONAL REPRESENTATIVE MAILS OR
OTHERWISE DELIVERS TO THE DEPARTMENT'S DIVISION OF MEDICAL ASSISTANCE
RECOVERIES A COPY OF A NOTICE IN THE FORM REQUIRED UNDER § 7-103 OF THIS
ARTICLE OR OTHER WRITTEN NOTICE, NOTIFYING THE DEPARTMENT THAT THE
CLAIM SHALL BE BARRED UNLESS THE DEPARTMENT PRESENTS ITS CLAIM WITHIN 2
MONTHS FROM THE RECEIPT OF THE NOTICE

Article - Health - General

15-120.

(a)     If a Program recipient has a cause of action against a person, the Department
shall be subrogated to that cause of action to the extent of any payments made by the
Department on behalf of the Program recipient that result from the occurrence that gave
rise to the cause of action.

(b)     (1) AN ATTORNEY REPRESENTING A PROGRAM RECIPIENT IN A CAUSE
OF ACTION TO WHICH THE DEPARTMENT HAS A RIGHT OF SUBROGATION SHALL
NOTIFY THE DEPARTMENT PRIOR TO FILING A CLAIM, COMMENCING AN ACTION,
OR NEGOTIATING A SETTLEMENT.

(2)      THE ATTORNEY SHALL NOTIFY THE DEPARTMENT IN ADVANCE OF
THE RESOLUTION OF A CAUSE OF ACTION AND SHALL ALLOW REASONABLE TIME
FOR THE DEPARTMENT THE DEPARTMENT 3 BUSINESS DAYS FROM THE RECEIPT OF
THE NOTICE TO ESTABLISH ITS SUBROGATED INTEREST.

(3)      THIS SUBSECTION MAY NOT BE CONSTRUED TO CREATE A CAUSE OF
ACTION FOR NOTIFYING OR FAILING TO NOTIFY THE DEPARTMENT.

(C) (1) Any Program recipient or attorney, guardian, or personal representative
of a Program recipient who receives money in settlement of or under a judgment or award
in a cause of action in which the Department has a subrogation claim shall, after receiving
written notice of the subrogation claim, hold that money, for the benefit of the
Department, to the extent required for the subrogation claim, after deducting applicable
attorney fees and litigation costs.

(2)     A person who, after written notice of a subrogation claim and possible
liability under this paragraph, disposes of the money, without the written approval of the
Department, is liable to the Department for any amount that, because of the disposition,
is not recoverable by the Department.

(3)     The Department may compromise or settle and release its subrogation
claim if, in its judgment, collection of the claim will cause substantial hardship:

(i) To the Program recipient; or

(ii) In a wrongful death action, to the surviving dependents of a
deceased Program recipient.

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