U.S. District Court for the Western District of Michigan; Docket No. l:90-CV-609;
Honorable Robert Holmes Bell; Unpublished
Official Federal Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Coordination with Other Health and Accident Medical Insurance [§3109a]
TOPICAL INDEXING:
No-Fault Insurer Claims for Reimbursement
Private Contract (Meaning and Intent)
CASE SUMMARY:
In this Opinion by Judge Bell, the claim by Farm Bureau for reimbursement from a health insurer of medical expenses paid pursuant to a no-fault policy was denied based upon the three-year limitation on actions contained in the health benefits plan.
Marjorie Clark was injured in an automobile accident in 1984. At the time she was insured under a no-fault automobile insurance policy with Farm Bureau, and under a health benefit plan through her husband's employer. Both plans contained coordinated benefits provisions, limiting liability under the plans to the extent of existing collateral insurance coverage. Farm Bureau paid medical expenses on behalf of Ms. Clark for injuries arising from the accident and then sought reimbursement from the health benefit plan. In 1990, Farm Bureau commenced action against the health plan seeking reimbursement for benefits paid by it. The health benefit plan did not dispute primary liability in accordance with the Michigan Supreme Court's ruling in Federal Kemper Insurance Company v Health Administration, 424 Mich 537 (1986). The only issue was whether the six-year limitation of actions provisions of MCLA 600.5807(a) applied or whether the shorter three year limitation provision contained in the employee health benefit plan applied.
Judge Bell held that the contractual three-year limitation contained in the health benefit plan was controlling, since Farm Bureau's subrogation claim arose solely from Ms. Clark's rights under the benefits plan. Therefore, the court granted summary judgment in favor of Risk Control, Inc.
