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South Carolina Subrogation Laws
Sections
State Subrogation
Made whole Doctrine
Common Fund
Collateral Source Rules
Hospital Lien Act
Medicaid Statute
State Subrogation
YES. Recognizes the existence of equitable subrogation but holds that an insurer cannot receive equitable subrogation if there is not a subrogation provision in the insurance contract (Shumpert v. Time Ins. Co., 496 S.E.2d 653 (S.C. Ct. App. 1998)).
Made whole Doctrine
YES and NO. Not explicitly recognized, but a similar version is adopted by statute.
SC Code Ann. §38-71-190: the insurer cannot recover more than the amount of benefits it paid previously in relation to the insured’s injury. But, if the directory, upon being petitioned by the insured, determines that subrogation would be inequitable and commits an injustice to the insured, subrogation is not allowed.
Common Fund
YES
Recognized in First Union Nat. Bank of South Carolina v. Soden, 511 S.E.2d 372 (S.C. Ct. App. 1998))
SC Code Ann. §38-71-190: Attorney’s fees and costs must be paid by the insurer from the amounts received
Collateral Source Rules
Applies, evidence not admissible if source is wholly independent (In re W.B. Easton Const. Co., Inc., 463 S.E.2d 317 (S.C. 1995))
Hospital Lien Act
South Carolina has no hospital lien act
Medicaid Statute
- SC Code Ann. §43-7-420: the recipient has assigned their rights to recover an amount paid by Medicaid from a third party to the department
- SC Code Ann. §43-7-430: the department is automatically subrogated to the extent of the amount of medical assistance paid by Medicaid to a recipient’s recovery from a third party
- Reductions
- SC Code Ann. §43-7-440(A)(6): the department may reduce an amount due to the department by 25% if the recipient has retained an attorney
- Additionally, the department may share in other costs of litigation by reducing the amount due by a percentage of those costs