This article has been published in “The Advocate”, a monthly publication of the Arizona Association for Justice/Arizona Trial Lawyers Association, March-April 2017 issue, @2017 by Steven J. Bruzonsky, Esq.
March/April 2017 Lien Updates
FEHBA Liens: Legally Enforceable in Arizona:
In Kobold v Aetna, No. 1 CA-CV 12-0315 (3-31-2016), Division One, Arizona Court of Appeals, held that FEHBA liens are legally enforceable in Arizona.The Arizona Supreme Court denied review, and our understanding is that a Petition for a Writ of Certiorari has been filed with the U.S. Supreme Court. Meanwhile, the U.S. Supreme Court recently granted certeriorari in Coventry Health Care of Missouri, Inc. v. Nevils over this very same issue, as the state court had ruled that the FEHBA plan was barred from reimbursement under Missouri law. So unless and until the U.S. Supreme Court in Coventry holds that state anti-subrogation law defeats FEHBA liens, FEHBA plans have legally enforceable liens here in Arizona.