Item C29Meeting Date: April 16, 2014 Division: Employee Services
Bulk Item: Yes X No ^ Department: Empl9yee Benefits
Staff Contact Person: Teresa AgWar X4458
I I I • 1 114, 1 1 • • • - , I . •
W-F-4-1106,14LOWIS3 I - I - 1 0 - - Im Pix7-) &ILgo v 9 0 , -4 - M
ITEM BACKGROUND:
On March 15, 2010, a covered employee of the County's Health Plan was seriously injured in an
automobile accident. In November, 2013, the employee received an insurance settlement from the
insurance company of the vehicle who struck him in the amount of $10,000, the policy limits. The
County's health insurance plan provides that the plan holds a lien on the insurance proceeds. An
investigation conducted by the employee's attorney reveals that the driver and owner of the other car
did not have any other assets. The employee's attorney has agreed to accept 50% of the insurance
proceeds on behalf of the employee in return for release of the lien held by the health plan arising out
of the accident subject to approval by the Board of County Commissioners.
V
STAFF RECOMMENDATIONS: Approval to accept one-half • the policy limits, $5,000, in retury
• release • the health plan lien.
FINUDGETED: Yes —No
I U I W W 31 Ili W, I � 11111,111 11111`1iil NO OR 51 W DITTRTOM
COST TO COUNTY: N/A SOURCE OF FUNDS:
REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year
APPROVED BY: County Atty�� OMB urchasing Risk Management
DOCUMENTATION: Included X Not Required
111 I-1;L111.3 V I UsNy
Revised 2/27/01
County of Monroe
ne ]Ronda Keys
Office of the Employee Services Division Director
The Historic Cato Cigar Factory
1100 Simonton Street, Suite 268
Vey west. FL 33040
(305) 292-4458 — Phone
(305) 292-4564 - Fax
TO: Board of County Commissioners
FROM: Teresa E. Aguiar,
Employee Services Directu-�
SUBJ: Approval to settle lien
f • 1 • 1111 Z 0 WISIM) •
Mayor Sylvia J. Murphy, District 5
Mayor Pro Tern, Danny L. Kolhage, District I
George Neugent, District 2
Heather Carruthers, District 3
David Rice, District 4
DATE: March 25, 2014
This item requests your approval to settle a lien against $10,000 settlement proceeds received by a
covered employee.
On March 15, 2010, a covered employee of the county's health plan was struck by a vehicle and
seriously injured while traveling northbound on US I on his motorcycle.
In November, 2013, the employee received a payment from the auto insurance company
representing the owner of the vehicle who struck the employee in the amount of $10,000, the
policy limits`
Earlier this year, the attorney representing the employee contacted the County in order to settle the
insurance proceeds from the insurance company. After some discussion, it was agreed that we
would accept 50% of the insurance company proceeds in return for release of the health plan's lien
arising out of the accident subject to approval by the Board of County Commissioners.
Under Florida Statute 768.28, the County is entitled to all of the settlement minus attorney's fees
and costs. The attorney's fees are typically 25% - 33%. The attorney's costs in this matter were
approximately $700. So, the maximum amount we would be entitled to is between $6,000 and
$6,700. The employee suffered catastrophic injuries and more than $15,000 in out-of-pocket costs.
Under the County's Health Plan, we would be within our rights to drop the employee from the
health plan based on the fact that he breached the policy by failing to notify us in advance of the
settlement agreement, however it is important to note that had he done that, we probably would not
have received anything greater if he had done so. $10,000 was the maximum of the insurance
policy of the owner of the car that struck the employee. An investigation conducted into the owner
and driver of the other vehicle did not reveal any other assets to pay a judgment.
It is recommended that you approve the settlement of 50% of $10,000 ($5,000). If you have any
questions, please do not hesitate to contact me at X4458.