[state agency providing medical assistance]” and stating that the clear intent of this language was to permit trial courts to exercise discretion in apportioning any recovery between the state and injured person). Specifically, there is no indication in § 39-719a that SRS is limited to recovering a pro rata share of the medical assistance recipient’s settlement proceeds, or that SRS may only recover if the recipient is fully compensated.
Although the statute does not indicate that SRS’ recovery is limited by general equitable principles, the statute does expressly place a number of specific limitations on SRS’ recovery. The primary statutory limitations on SRS' recovery are found in subsection (b) and subsection (c).
[1] Section 39-719a(b) provides for the allocation of attorney fees, stating that “the court shall fix attorney fees, which shall be paid proportionately by [SRS] and the injured person . . . in the amounts determined by the court." Kan. Stat. Ann. § 39-719a(b). This subsection
- ↑ Other exceptions to SRS' subrogation right, not directly relevant in this case, are contained in subsection (a) of § 39-719a. See Kan. Stat. Ann. § 39719a(a). This subsection provides that SRS may recover for medical expenditures from the medical assistance recipient and that SRS is subrogated to the rights of the recipient “except as provided under K.S.A. 39-786 and 39-787, and amendments thereto, or under section 303 and amendments thereto of the federal Medicare catastrophic coverage act of 1988, whichever is applicable." Id. The referenced provisions in this subsection address the treatment of the joint income and resources of the medical assistance recipient and his or her spouse. The provisions allow the recipient and spouse to divide joint income and resources into separate shares, and place limitations on the state’s rights to the spouse’s share.
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