Here’s what you should know.
1. The overturned case stemmed from Missouri. Kansas City-based Coventry Health Care of Missouri insured a man injured in a car crash through the Federal Employees Health Benefits Act.
2. Coventry paid his bills and after the man received a settlement Conventry put a lien on a portion of his funds.
3. The man satisfied the lien, and then filed a lawsuit against Coventry, claiming Missouri prohibited “subrogation or reimbursement.” The payer claimed the Federal Employees Health Benefits Act overruled other applicable laws.
4. The trial court and the Missouri Court of Appeals ruled in favor of the payer. The Missouri Supreme Court reversed the decision saying the federal statute’s scope excluded subrogation and reimbursement.
5. The U.S. Supreme Court reversed the state Supreme Court’s decision saying that Congress doesn’t use “particular linguistic formulation when preempting state law,” the Record reports.
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