Nevils v. Group Health Plan, Inc.Annotate this Case
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.