PARRIS N. GLENDENING, Governor

Ch. 586

15-121.1.

(a)     If a Program recipient has a claim for any medical, hospital or disability
benefits under Article 48A, § 539 of the Code, the Department shall be subrogated to
that claim to the extent of any payments made by the Department on behalf of the
Program recipient that results from the occurrence that gave rise to the claim less:

(1)     Applicable attorney's fees; and

(2)     Any rights for loss of income.

(b)    (1) AN ATTORNEY REPRESENTING A PROGRAM RECIPIENT UNDER THIS
SUBTITLE ON A CLAIM TO WHICH THE DEPARTMENT HAS A RIGHT OF
SUBROGATION SHALL NOTIFY THE DEPARTMENT PRIOR TO FILING THE CLAIM.

(2) 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 for a claim to 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's fees.

(2)     A person who, after written notice of a subrogation claim from the
Department 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 to the
Program recipient or in a wrongful death action, the surviving dependent of a deceased
Program recipient.

15-121.2.

(a)     If a Program recipient has a claim for any medical, hospital, or disability
benefits under Article 48A, § 541 of the Code, the Department shall be subrogated to
that claim to the extent of any payments made by the Department on behalf of the
Program recipient that results from the occurrence that gave rise to the claim, less
applicable attorney's fees.

(b)     (1) AN ATTORNEY REPRESENTING A PROGRAM RECIPIENT UNDER THIS
SUBTITLE ON A CLAIM TO WHICH THE DEPARTMENT HAS A RIGHT OF
SUBROGATION SHALL NOTIFY THE DEPARTMENT PRIOR TO FILING THE CLAIM.

(2) 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, attorney, guardian, or personal representative of
a Program recipient who receives money for a claim to which the Department has a
subrogation claim shall, after receiving written notice of the subrogation claim, hold that

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