Will Medicaid try to get reimbursed after you get an injury settlement? The simple answer is yes. But there is more to this topic that you will want to know.

For your peace of mind and understanding, the skilled personal injury attorneys at McCready Law put together an informative guide. Keep reading to learn what Medicaid would likely do after you are compensated for medical expenses in a personal injury claim.

Medicaid is the Payor of Last Resort

Medicaid is considered the payer of last resort. That term means that all other legally liable third-party sources, such as private health insurance, Medicare, employer-sponsored plans, worker’s compensation, or a personal injury claim, must pay for a beneficiary’s medical care before Medicaid pays. Even if Medicaid does pay a portion of the hospital bills after an injury, the jointly funded state and federal program only covers remaining costs after other insurers have paid their share.

What Is the Medicaid Lien Process?

Because Medicaid is the payor of last resort, government regulations allow the agency to place a lien against a settlement to recover taxpayers’ costs. Generally, Medicaid is only permitted to claim reimbursement for medical expenses they actually paid, often reducing the total recovery. However, they are not typically permitted to claim funds designated for economic damages like pain and suffering.

Could a Personal Injury Settlement Disqualify Me From Medicaid?

Yes. Receiving a settlement could be considered new income or assets. If so, an individual may be deemed temporarily or permanently ineligible. Medicaid is a needs-based program with strict income and asset limits, and a settlement may cause a recipient to exceed these limits.

That is why proper planning, such as using a Special Needs Trust or structured settlement, is essential to protect a patient’s benefits. However, if an injured party fails to notify Medicaid of their settlement, that oversight, intentional or not, could also result in a loss of benefits.

Let Us Help You Maximize Your Injured Settlement Despite Medicaid Reimbursement

Yes, Medicaid would very likely look to be reimbursed after you get an injury settlement. For this reason, you want to avoid tackling the personal injury legal process alone. So, if you are enrolled in Medicaid, reach out to McCready Law now to set up your free case consultation.

A skilled attorney would manage Medicaid reimbursement after a settlement by verifying the lien’s validity, negotiating reductions based on attorney fees and non-medical damages, and ensuring only necessary, accident-related costs are repaid. Let this resolute legal team help you retain the maximum amount of compensation possible.