Judge: Theresa M. Traber, Case: 22STCV16887, Date: 2024-05-23 Tentative Ruling

Case Number: 22STCV16887    Hearing Date: May 23, 2024    Dept: 47

Tentative Ruling

 

Judge Theresa M. Traber, Department 47

 

 

HEARING DATE:     May 23, 2024                         JUDGMENT: September 30, 2022

                                                          

CASE:                         Creditors Adjustment Bureau Inc. v. Senior Hospice Care, Inc.

 

CASE NO.:                 22STCV16887           

 

MOTION FOR ASSIGNMENT ORDER OF MEDICARE BENEFITS

 

MOVING PARTY:               Plaintiff/Judgment Creditor Creditors Adjustment Bureau

 

RESPONDING PARTY(S): No response on eCourt as of 5/20/24

 

CASE HISTORY:

·         05/23/22: Complaint filed.

·         08/16/22: Default entered.

·         09/30/22: Default judgment entered.

 

STATEMENT OF MATERIAL FACTS AND/OR PROCEEDINGS:

           

            This is a collection action. Plaintiff seeks to collect workers’ compensation insurance premiums owed by Defendant.

 

Plaintiff and Judgment Creditor moves for an order assigning Medicare reimbursements and payments on claims submitted by the Judgment Debtor to the Judgment Creditor.

 

TENTATIVE RULING:

 

Plaintiff/Judgment Creditor’s Order for Assignment of Medicare Funds is GRANTED.

 

            Centers for Medicare and Medicaid Services and Noridian Healthcare Solutions LLC are ordered to pay to the Judgment Creditor all Medicare reimbursements and payments on claims submitted by Judgment Debtor.

 

            This order shall remain in effect until such time as the full balance of the judgment, including post-judgment costs and interest, has been paid in full.

 

DISCUSSION:

 

Plaintiff and Judgment Creditor moves for an order assigning Medicare reimbursements and payments on claims submitted by the Judgment Debtor to the Judgment Creditor.

 

Assignments of Medicare payments are governed by federal regulations, as set forth in 42 C.F.R. § 424.73, which states that “Medicare may pay under an assignment established by, or in accordance with, the order of a court of competent jurisdiction if the assignment meets the conditions set forth in § 424.90.” (42 C.F.R. § 424.73(b)(2).) Pursuant to section 424.90, such an assignment is effective for Medicare payments only if:

 

(1) Someone files a certified copy of the court order and of the executed assignment or reassignment (if it was necessary to execute one) with the intermediary or carrier responsible for processing the claim; and

 

(2) The assignment or reassignment—

 

(i) Applies to all Medicare benefits payable to a particular person or entity during a specified or indefinite time period; or

 

(ii) Specifies a particular amount of money, payable to a particular person or entity by a particular intermediary or carrier.

 

(42 C.F.R. § 424.9(a) (1)-(2).) Thus, Judgment Creditor requires a court order for assignment of these funds to obtain Medicare reimbursements and payments in satisfaction of the judgment. 

 

Orders for assignment are governed by Code of Civil Procedure section 708.510, which provides, in relevant part, that “upon application of the judgment creditor on noticed motion, the court may order the judgment debtor to assign to the judgment creditor. . . all or part of a right to payment due or to become due, whether or not the right is conditioned on future developments.” (Code Civ. Proc. § 708.510(a).)

 

The effect and priority of such an assignment is governed by Civil Code section 955.1. (Code Civ. Proc. § 708.530.) For the purpose of priority, an assignee of a right to payment pursuant to section 708.530 shall be deemed to be a bona fide assignee for value under the terms of Civil Code section 955.1.  (Code Civ. Proc.§ 708.530(a).)

 

In determining whether to order an assignment or the amount of an assignment pursuant to section 708.510(a), the court may take into consideration all relevant factors, including the following:  

 

  1. The reasonable requirements of a judgment debtor who is a natural person and of persons supported in whole or in part by the judgment debtor.

 

  1. Payments the judgment debtor is required to make or that are deducted in satisfaction of other judgments and wage assignments, including earnings assignment orders for support. 

 

  1. The amount remaining due on the money judgment.

 

  1. The amount being or to be received in satisfaction of the right to payment that may be assigned. 

 

(Code Civ. Proc. § 708.510(c)(1)-(4).) A right to payment may be assigned pursuant to section 708.510 only to the extent necessary to satisfy the money judgment.  (Code Civ. Proc.  §708.510(d).) 

 

            Here, the Judgment Debtor is not a natural person. Counsel for Judgment Creditor states that the current balance on the judgment is $55, 381.95, plus $13.02 per day in interest. (Declaration of Michael D. Frischer ISO Mot. ¶ 4.) Attorney Frischer states on information and belief that Judgment Debtor has rights to payment that are due or will become due from the Centers for Medicare and Medicaid Services and Noridian Healthcare Solutions, LLC. (¶ 6.) These payment rights are purportedly related to Judgment Debtor’s unique National Provider Identifier pursuant to the Health Insurance Portability and Accountability Act. (¶¶ 7-8.) Attorney Frischer further states on information and belief that the Judgment Debtor’s payment rights have not previously been assigned. (¶ 10.)

 

             As no party has opposed this motion, the Court finds that Judgment Creditor has properly demonstrated a basis for an assignment order. 

 

CONCLUSION:

 

            Accordingly, Plaintiff/Judgment Creditor’s Order for Assignment of Medicare Funds is GRANTED.

 

            Centers for Medicare and Medicaid Services and Noridian Healthcare Solutions LLC are ordered to pay to the Judgment Creditor all Medicare reimbursements and payments on claims submitted by Judgment Debtor.

 

            This order shall remain in effect until such time as the full balance of the judgment, including post-judgment costs and interest, has been paid in full.

 

            Moving Party to give notice.

 

//

 

IT IS SO ORDERED.

 

Dated:  May 23, 2024                         ___________________________________

                                                                                    Theresa M. Traber

                                                                                    Judge of the Superior Court

 


            Any party may submit on the tentative ruling by contacting the courtroom via email at Smcdept47@lacourt.org by no later than 4:00 p.m. the day before the hearing. All interested parties must be copied on the email. It should be noted that if you submit on a tentative ruling the court will still conduct a hearing if any party appears. By submitting on the tentative you have, in essence, waived your right to be present at the hearing, and you should be aware that the court may not adopt the tentative, and may issue an order which modifies the tentative ruling in whole or in part.