Nevils v. Group Health Plan, Inc., et al.

Class action brought against health insurance carrier of federal employee for seeking reimbursement of health insurance benefits paid when the injured employee recovered in settlement with the party who caused the wreck. Missouri law generally prohibits health insurance carriers from seeking such reimbursement. Insurance carrier argued that provision in Federal Employee Health Benefits Act (FEHBA) allowed terms of the private contract between federal government and insurer to supersede state law. Case went up on appeal to the Missouri Supreme Court and the U.S. Attorney General’s office argued in favor of the insurance carrier’s position. In a unanimous decision, the Missouri Supreme Court adopted Blake’s arguments and became the first state supreme court in the nation to hold that a state law prohibiting subrogation/reimbursement was not preempted by the terms of a FEHBA contract. Subsequently reversed and remanded by the United States Supreme Court.