TITLE 32 - NATIONAL DEFENSE

SUBTITLE A - DEPARTMENT OF DEFENSE

CHAPTER VI - DEPARTMENT OF THE NAVY

SUBCHAPTER E - CLAIMS

PART 757 - AFFIRMATIVE CLAIMS REGULATIONS

subpart b - MEDICAL CARE RECOVERY ACT (MRCA) CLAIMS

757.19 - Waiver and compromise.

  (a) General. A JAG designee may authorize waiver or compromise of any MCRA claim under his authority which does not exceed $40,000.00. A third party's liability for medical costs to the United States arising from a particular incident will be considered as a single claim in determining whether the claim is more than $40,000.00 for the purpose of waiver and compromise. When the JAG designee considers waiver or compromise appropriate in a claim which exceeds $40,000.00, the claim file will be forwarded to JAG in accordance with 757.18 (b) and (c).

  (b) Waiver. The JAG designee may waive the Federal Government's MCRA interest when a responsible third-party tortfeasor cannot be located, is judgment proof, or has refused to pay and litigation is not feasible.

Waiver is also appropriate when, upon written request by the injured person or legal representative, it is determined that collection would cause undue hardship to the injured person. In assessing undue hardship, the following circumstances of the injured person should be considered: (1) Permanent disability or disfigurement; (2) Lost earning capacity; (3) Out-of-pocket expenses; (4) Financial status; (5) Disability, pension and similar benefits available; (6) Amount of settlement or award from third-party tortfeasor; and (7) Any other factors which objectively indicate fairness requires waiver.

  (c) Compromise. The JAG designee may, upon written request of the injured person or legal representative, compromise the Federal Government's MCRA interest using the criteria listed above.