(1) To secure reimbursement of any
assistance paid under chapter 74.09 RCW or reimbursement for any
residential care provided by the department at a hospital for the
mentally ill or habilitative care center for the developmentally disabled, as a result of injuries to or illness
of a recipient caused by the negligence or wrong of another, the
department shall be subrogated to the recipient's rights against
a tort feasor or the tort feasor's insurer, or both.
(2) The department shall have a lien upon any recovery by or
on behalf of the recipient from such tort feasor or the tort
feasor's insurer, or both to the extent of the value of the
assistance paid or residential care provided by the department,
provided that such lien shall not be effective against recoveries
subject to wrongful death when there are surviving dependents of
the deceased. The lien shall become effective upon filing with
the county auditor in the county where the assistance was
authorized or where any action is brought against the tort feasor
or insurer. The lien may also be filed in any other county or
served upon the recipient in the same manner as a civil summons
if, in the department's discretion, such alternate filing or
service is necessary to secure the department's interest. The
additional lien shall be effective upon filing or service.
(3) The lien of the department shall be upon any claim,
right of action, settlement proceeds, money, or benefits arising
from an insurance program to which the recipient might be
entitled (a) against the tort feasor or insurer of the tort
feasor, or both, and (b) under any contract of insurance
purchased by the recipient or by any other person providing
coverage for the illness or injuries for which the assistance or
residential care is paid or provided by the department.
(4) If recovery is made by the department under this section
and the subrogation is fully or partially satisfied through an
action brought by or on behalf of the recipient, the amount paid
to the department shall bear its proportionate share of
attorneys' fees and costs.
(a) The determination of the proportionate share to be borne
by the department shall be based upon:
(i) The fees and costs approved by the court in which the
action was initiated; or
(ii) The written agreement between the attorney and client
which establishes fees and costs when fees and costs are not
addressed by the court.
(b) When fees and costs have been approved by a court, after
notice to the department, the department shall have the right to
be heard on the matter of attorneys' fees and costs or its
proportionate share.
(c) When fees and costs have not been addressed by the
court, the department shall receive at the time of settlement a
copy of the written agreement between the attorney and client
which establishes fees and costs and may request and examine
documentation of fees and costs associated with the case. The
department may bring an action in superior court to void a
settlement if it believes the attorneys' calculation of its
proportionate share of fees and costs is inconsistent with the
written agreement between the attorney and client which
establishes fees and costs or if the fees and costs associated
with the case are exorbitant in relation to cases of a similar
nature.
(5) The rights and remedies provided to the department in
this section to secure reimbursement for assistance, including
the department's lien and subrogation rights, may be delegated to
a managed health care system by contract entered into pursuant to
RCW 74.09.522. A managed health care system may enforce all
rights and remedies delegated to it by the department to secure
and recover assistance provided under a managed health care
system consistent with its agreement with the department.
[1997 c 236 § 2; 1990 c 100 § 7.]
NOTES:
Application -- 1990 c 100 §§ 2, 4, 7(1), 8(2): "Sections 2, 4, 7(1), and 8(2) of this act apply to all existing claims against third parties for which settlements have not been reached or judgments entered by June 7, 1990." [1990 c 100 § 13.]