Medical expenses form a substantial part of a personal injury settlement. As a result, Medicaid may hold a lien on a settlement if an injured victim obtained treatment using the state or federal-sponsored program.
The medical lien allows Medicaid to claim a portion of your personal injury settlement to reimburse past or future medical expenses. The portion of settlement entitled to Medicaid could vary based on the state’s rules and the type of settlement you receive.
A South Bend, IN, personal injury attorney can help you seek an injury settlement and understand what portion of your settlement may go to Medicaid.
Medicaid is a joint state and federal program that helps meet medical care for some people with limited income and resources. The federal government has rules that all state Medicaid programs must follow; however, each program runs independently.
Medicaid covers unique health services, including nursing home care and personal care services.
Your countable assets, like a personal injury settlement, will determine your continued eligibility for Medicaid. A settlement is considered a countable asset when deposited in a bank account, invested in stock, bonds, or mutual funds, or used to purchase real estate.
If you receive a personal injury settlement, your new resources might end your eligibility for Medicaid.
A Supreme Court ruling says that if a patient has funds for future medical care and receives a claim, the government could take part of the settlement value to recoup the government funding.
In addition, the ruling stated that a State Medicaid plan could seek reimbursement from a Medicaid recipient’s personal injury settlement for all medical expenses, irrespective of whether they were paid in the past or are potential expenses.
Federal and state laws regulate Medicaid recovery from personal injury settlements. While Medicaid has a right to recover medical expenses from a settlement, there are limitations and exceptions to the recovery.
Some states, including Indiana, have enacted laws limiting the amount Medicaid can recover, particularly when the individual’s recovery would be significantly impacted after Medicaid reimbursement.
It is vital to involve a personal injury attorney when settling Medicaid liens. An attorney can negotiate with Medicaid to minimize a reimbursement amount and ensure compliance with applicable laws.
More importantly, an attorney will offer legal advice on navigating the settlement so that the payout doesn’t affect your future eligibility for Medicaid.
In addition to medical expenses, a car accident results in various losses, including out-of-pocket costs, pain and suffering, lost income, and loss of enjoyment of life. If Medicaid takes a large portion of your settlement, you may not fully recover from the effects of the accident.
Therefore, you deserve representation from an experienced attorney from Blackburn Romey, who has a proven track record of representing injured victims. Contact us online or at (833) 264.0904 to request a free consultation.
Blackburn Romey founding partner Tom Blackburn graduated with honors receiving a degree from Indiana University at the Robert H. McKinney School of Law. Initiating his legal career in 1977, he has been active in practicing law and currently serves as a member of the Indiana State Bar Association on the Ethics and Advertising Committees, the American Bar Association, the American Association for Justice, as a board member at the Indiana Trial Lawyers Association, and as an appointed member of the Executive Committee for the State of Indiana for the National Trial Lawyers Association.
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Tom Blackburn, who has more than 47 years of legal experience, including over 39 years specializing as a personal injury attorney.
