Missouri Supreme Court Holds Federal Act Does Not Preempt Missouri Law Barring Subrogation Of Personal Injury Claims

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In essence overruling a previous opinion from the courts of appeal, the Missouri Supreme Court has held that the Federal Employee Health Benefits Act (“FEHBA”) does not preempt Missouri law prohibiting the subrogation of personal injury claims.

Plaintiff Nevils, a federal employee with medical insurance offered through a federal employee health benefit plan carried by GHP, was injured in an automobile accident. GHP paid his resulting medical expenses and asserted a reimbursement lien to any recovery Nevils received from the tortfeasor responsi- ble for the accident. Nevils settled with the tortfeasor and satisfied GHP’s lien.

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