Brown

The primary issue before us is the applicability of Civil Code section 3333.1 to Medi-Cal liens. The California Department of Health Services (Department) appeals from an order granting a motion to strike its lien in the underlying medical malpractice action filed by plaintiffs.

Subsequent to the filing of the complaint for professional negligence against the two doctor-defendants, Department, pursuant to statutory authority granted by Welfare and Institutions Code section 14124.70 et seq., filed in the action its notice of lien for $739 for ameliorative treatment provided to plaintiffs at public expense subsequent to the alleged substandard medical treatment.

Defendant Dr. Harmon Michelson filed a “Motion to Strike Notice of Lien or in the Alternative . . . Motion for Summary Judgment.” He was joined in this motion by his codefendant Dr. Stewart. The motion was grounded upon a claim that the lien was invalid, in that Medi-Cal’s right to claim reimbursement from the settlement of or judgment in a medical malpractice action had been abrogated by enactment of Civil Code section 3333.1. A secondary issue of procedural impropriety in noticing the lien was also…

I concur in the result.

I think it clear from a reading of the Medical Injury Compensation Reform Act and its legislative history that the collateral source provisions of section 3333.1 were meant to apply to the monetary value of medical services provided under the Social Security Act. However, the Social Security Act directs the state to “seek reimbursement for such assistance to the extent of ... liability” of third parties. (42 U.S.C. § 1396a(a)(25).) Section 3333.1, as it applies to Social Security benefits, is in conflict with that requirement and is thereby rendered invalid by the supremacy clause of the United States Constitution.

A.

The fallacy of the majority opinion lies in its distinction between Social Security benefits and Social Security entitlements. The majority read the collateral source provisions of Civil Code section 3333.1, subdivision (a), to apply only where Social Security “benefits” are in the form of money paid directly to the recipient.

To reach this result, the majority opinion severs out for distinct treatment the last clause of section 3333.1, subdivision (a), which applies to medical service contracts providing inter alia for services. The…

George Deukmejian, Attorney General, Thomas E. Warriner, Assistant Attorney General, and Robert F. Tyler, Deputy Attorney General, for Claimant and Appellant.

Hardy, Erich & Brown, Robert Zimmerman, Wilke, Fleury, Hoffelt & Gray and Bradley N. Webb for Defendants and Respondents.

OPINION

CARR, J.

The primary issue before us is the applicability of Civil Code section 3333.1 to Medi-Cal liens. The California Department of Health Services (Department) appeals from an order granting a motion to strike its lien in the underlying medical malpractice action filed by plaintiffs.

Subsequent to the filing of the complaint for professional negligence against the two doctor-defendants, Department, pursuant to statutory authority granted by Welfare and Institutions Code section 14124.70 et seq., filed in the action its notice of lien for $739 for ameliorative treatment provided to plaintiffs at public expense subsequent to the alleged substandard medical treatment.

Defendant Dr. Harmon Michelson filed a "Motion to Strike Notice of Lien or in the Alternative ... Motion for Summary Judgment." He was joined in this motion by his codefendant Dr. Stewart. The motion was grounded upon a claim…