Stefanie Shields v. Government Employees Hospital Association, Inc. And State Farm Mutual Automobile Insurance Company

OPINION

RONALD LEE GILMAN, Circuit Judge.

After suffering severe injuries in an automobile accident, Stefanie Shields brought a declaratory action against her two insurers, Government Employees Hospital Association, Inc. (GEHA) and State Farm Mutual Automobile Insurance Company (State Farm). GEHA initially paid significant sums for Shields’s medical treatment, while State Farm paid nothing due to a benefits-coordination clause in its policy. Later, however, GEHA demanded reimbursement from the proceeds that Shields had received in a third-party tort settlement as a result of the accident.…