Nevils v. Group Health Plan, Inc.

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Appellant was a federal employee with a health insurance plan governed by the Federal Employee Health Benefits Act (FEHBA). Appellant filed suit against Group Health Plan, Inc. and ACS Recovery Services, Inc. (collectively, Respondents) after Respondents enforced a subrogation lien against the proceeds from Appellant’s settlement of a personal injury claim. The trial court entered summary judgment for Respondents, concluding that FEHBA preempts Missouri anti-subrogation claims. The Supreme Court reversed, holding that 5 U.S.C. 8902(m)(1) of FEHBA does not preempt Missouri law prohibiting subrogation of personal injury claims. The United States Supreme Court vacated the Court’s decision and remanded for a determination as to whether a new regulation promulgated by the Office of Personnel Management (OPM) established the FEHBA preempts Missouri’s anti-subrogation law. The Supreme Court held that the OPM regulation did not establish that FEHBA preempts Missouri law prohibiting the subrogation of personal injury claims. Remanded. View "Nevils v. Group Health Plan, Inc." on Justia Law