Maryland Code § HG-15-121.1

Section HG-15-121.1
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(a) If a Program recipient has a claim for any medical, hospital or disability
benefits under §§ 19-505 and 19-506 of the Insurance Article, the Department shall
be subrogated to that claim to the extent of any payments made by the Department
on behalf of the Program recipient that results from the occurrence that gave rise to
the claim less:
(1) Applicable attorney's fees; and
(2) Any rights for loss of income.
(b) (1) An attorney representing a Program recipient under this subtitle
on a claim to which the Department has a right of subrogation shall notify the
Department prior to filing the claim.
(2) This subsection may not be construed to create a cause of action
for notifying or failing to notify the Department.
(c) (1) Any Program recipient or attorney, guardian, or personal
representative of a Program recipient who receives money for a claim to which the
Department has a subrogation claim shall, after receiving written notice of the
subrogation claim, hold that money, for the benefit of the Department, to the extent
required for the subrogation claim, after deducting applicable attorney's fees.
(2) A person who, after written notice of a subrogation claim from the
Department and possible liability under this paragraph, disposes of the money,
without the written approval of the Department, is liable to the Department for any
amount that, because of the disposition, is not recoverable by the Department.
(3) The Department may compromise or settle and release its
subrogation claim if, in its judgment, collection of the claim will cause substantial
hardship to the Program recipient or in a wrongful death action, the surviving
dependent of a deceased Program recipient.

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