Nelson v. U.S. Office of Personnel Management

MEMORANDUM *

Douglas Nelson appeals the district court’s order granting summary judgment *618 in favor of the United States Office of Personnel Management (OPM) and denying his motion for summary judgment. Nelson contends that the district court erred in upholding OPM’s decision. OPM determined that because the Office of Workers’ Compensation Programs (OWCP) accepted Nelson’s workers’ compensation claims, his medical claims arising from his asbestos-related illness are excluded from coverage under the KPS Health Plan.

Nelson and his wife received $1.3 million in settlement of their lawsuits against various asbestos products manufacturers. As provided by 5 U.S.C. § 8132 , Nelson reimbursed OWCP for medical bills it had paid on his behalf (less a deduction for attorneys’ fees and expenses). OWCP notified Nelson that he would be responsible for medical expenses out of the settlement until a statutory surplus amount had been expended, at which point OWCP would again begin paying for his medical expenses. Neither party disputes the amount of the surplus. Instead of paying his medical expenses, Nelson submitted his medical claims to KPS, which paid over $180,000 in medical expenses…