This case involved a plaintiff who suffered life altering injuries as a result of medical malpractice. The plaintiff was a member of a self-funded ERISA qualified health plan which paid over $732,000.00 in malpractice related medical benefits. The plaintiff’s attorney settled the malpractice action in two parts, with a small settlement of $250,000 occurring first. At the time of the first settlement the self-funded ERISA plan asserted a subrogation/reimbursement claim almost three times the size of the entire settlement. Fearing that the plan would take the entire settlement, as is possible following the disastrous ruling in U.S. Airways v. McCutchen, plaintiff’s counsel engaged Synergy Lien Resolution Services. Synergy was able to negotiate a partial settlement with the plan that allowed the plaintiff to net a substantial portion of the settlement and allowed counsel to recoup his cost as well as take his fee. When the final settlement occurred, Synergy once again went to work negotiating with the self-funded ERISA plan. Despite the second settlement providing enough funds to repay the ERISA lien in full, Synergy relentlessly pressured and persuaded the plan to accept a greatly reduced repayment. After difficult and heated negotiations, Synergy was able to reduce the repayment demand by 93% for a savings of $682,905.63.
