United States v. Metropolitan Life Insurance Co.

The Government filed a complaint against Metropolitan Life Insurance Co. (“Metropolitan”) seeking reimbursement for costs of medical services provided to veterans by the Veterans Administration. From a grant of summary judgment for the United States Metropolitan appeals. We reverse.

FACTS

Ten veterans insured by Metropolitan received non-service related medical treatment at V.A. facilities in Arizona. Certified as “unable to defray . .. expenses” pursuant to 38 U.S.C. § 610 (a)(1)(B) (1979), they received hospital care without cost. In declaring themselves unable to pay, the veterans considered “entitlement to medical care under an insurance policy,” but concluded that even with Metropolitan coverage they could not afford private medical care.

Coincident with assertion of an inability to pay, the veterans assigned their rights to insurance benefits to the Veterans Administration. It is undisputed that the veterans could assign to the Government only benefits they themselves had. See, e.g., Lount v. Mosher, 115 F.2d 903 (9th Cir. 1940), cert. denied, 313 U.S. 581 , 61 S.Ct. 1097 , 85 L.Ed. 1537 (1941). Metropolitan asserts that because the veterans had no right to payment for…