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North Dakota Subrogation Laws
Sections
State Subrogation
Made Whole Doctrine
Common Fund
Collateral Source Rules
Hospital Lien Act
Medicaid Statute
State Subrogation
YES, equitable and contractual (Tschider v. Burtts, 149 N.W.2d 710 (N.D. 1967))
Made Whole Doctrine
Unaddressed in health insurance cases (being made whole is not a requirement for recovery in no fault auto insurance cases however, Isaac v. State Farm Mut. Auto. Ins. Co., 547 N.W.2d 548 (N.D. 1996)).
Common Fund
Recognized in other contexts, but unaddressed in health insurance subrogation cases. The common fund doctrine has never been applied in health care subrogation before. In Hayden v. Medcenter One, Inc., 2013 WL 1339615(N.D. 2013) the Supreme Court of North Dakota did not apply the common fund doctrine.
Collateral Source Rules
N.D. Cent. Code §32-03.2-06 controls
A party responsible for the payment of damages may apply to the court for a reduction to the extent the damages are covered by payment from a collateral source. This includes insurance subrogation
Hospital Lien Act
- N.D. Cent. Code §35-18-01: A hospital has a lien for the reasonable value of hospitalization services rendered
- N.D. Cent. Code §35-18-02: a notice of intention to file a hospital lien must be served upon the person claimed to be liable
- N.D. Cent. Code §35-18-03: hospital must file, not later than 30 days after the services have been rendered and terminated, a lien statement in the office of the clerk of the district court
- No mentions of attorney’s fees or balance billing
Medicaid Statute
- N.D. Cent. Code §50-24.1-30(2): The department shall seek reimbursement up to the full amount of medical assistance paid
- Reductions: N.D. Cent. Code §50-24.1-30(10): the department is not required to seek reimbursement from, or may reduce or compromise a claim against, a liable third party on claims for which the amount it reasonably expects to recover will be less than the cost of recovery or for which recovery efforts will not be cost-effective
- cost effectiveness is determined based on: actual and legal issues of liability, total funds available for settlement, and an estimate of the cost to the department of pursuing its claim
- N.D. Cent. Code §50-24.1-30(3): a medical assistance recipient shall inform the department when there is a potential liable third party
- N.D. Cent. Code §50-24.1-30(5): the department shall recover the full amount of all medical assistance provided