WASHINGTON (AP) – The Supreme Court says a man doesn’t have to pay his health benefit plan back all of the money he got after an accident.
The high court ruled 5-4 that James McCutchen, a US Airways, Inc., employee can deduct attorneys’ fees from the $66,866 paid from his health plan after an auto accident.
McCutchen settled with the other driver for $10,000 and got $100,000 in underinsured motorist coverage, and after attorney’s fees received $66,000.
US Airways said its contract with McCutchen meant it gets its $66,866 reimbursed. Justice Elena Kagan said the health plan has a right to be reimbursed, but McCutchen should be able to charge his health plan for part of his lawyers fees.
The case now goes back to the lower court.
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