§ 130A-13. Application for eligibility for Department medical payment program constitutes assignment to the State of right to third party benefits.
§130A‑13. Application for eligibility for Department medical paymentprogram constitutes assignment to the State of right to third party benefits.
(a) Notwithstanding anyother provisions of law, by applying for financial eligibility for anyDepartment medical payment program administered under this Chapter, therecipient patient or responsible party for the recipient patient shall bedeemed to have made an assignment to the State of the right to third partybenefits, contractual or otherwise, to which he may be entitled to the extentof the amount of the Department's payment on behalf of the recipient patient.Any attorney retained by the recipient patient shall be compensated for hisservices in accordance with the following schedule and in the following orderof priority from any amount of such third party benefits obtained on behalf ofthe recipient by settlement, with judgment against, or otherwise from a thirdparty:
(1) First to the paymentof any court costs taxed by the judgment;
(2) Second to the paymentof the fee of the attorney representing the beneficiary making the settlementor obtaining the judgment, but this fee shall not exceed one‑third of theamount obtained or recovered to which the right of subrogation applies;
(3) Third to the paymentof the amount of assistance received by the beneficiary as prorated with otherclaims against the amount obtained or received from the third party to whichthe right of subrogation applies, but the amount shall not exceed one‑thirdof the amount obtained or recovered to which the right of subrogation applies;and
(4) Fourth to thepayment of any amount remaining to the beneficiary or his personalrepresentative.
The United States and theState of North Carolina shall be entitled to shares in each net recovery underthis section. Their shares shall be promptly paid under this section and theirproportionate parts of such sum shall be determined in accordance with thematching formulas in use during the period for which assistance was paid to therecipient.
(b) The Departmentshall establish a third party resources collection unit that is adequate toensure collection of third party resources.
(c) The Commission mayadopt rules necessary to implement this section.
(d) Notwithstanding anyother law to the contrary, in all actions brought by the State pursuant tosubsection (a) of this section to obtain reimbursement for payments for medicalservices, liability shall be determined on the basis of the same laws andstandards, including bases for liability and applicable defenses, as would beapplicable if the action were brought by the individual on whose behalf themedical services were rendered. (1989, c. 483, s. 1; 1995, c.508, s. 1.)