Medicaid Lien Personal Injury Settlement

You have worked hard to achieve a personal injury settlement for your client. Unfortunately, if Medicaid paid for their medical care, your work is not complete. A Medicaid lien on the personal injury settlement will likely be made. It’s not only important that your client is aware of this, it’s critical that it’s handled in the proper manner. The process of working with Medicaid is arduous and detailed. Trust the experts at Synergy Settlement Services. We have the experience and resources necessary to protect the interests of your clients.

Working with Medicaid

If your client receives Medicaid benefits, they must assign their right to payments for medical care to Medicaid. This is a requirement even if your client does not file a claim. If Medicaid paid for medical cost associated with the injury, they have a statutory right to file a lien against a third party settlement. While it appears that little can be done in this case, their are a few items to consider that can impact the amount of the personal injury lien being placed on your client’s settlement:

Unrelated Expenses on the Personal Injury Lien

Medicaid liens on personal injury settlements can only apply to medical expenses related to the injury. It’s not uncommon for Medicaid to place payments related to other procedures that are taking place during that timeframe. It’s important that the conditional payment letter is thoroughly reviewed in order to point out these charges and get them removed.

Ahlborn Reduction

According to the case Ark. Dep’t of Human Servs. v. Ahlborn, 547 U.S. 268 (2006), Medicaid liens may not apply to portions of the settlement that account for items such as lost wages or pain and suffering. If this situation is present in the case, a Medicaid lien can only recover a pro rata share of its claim.This is the ratio that the settlement amount bears to the reasonable value of the total claim.

Working with Synergy

At Synergy, we have a wealth of experience handling Medicaid lien issues for attorneys and their clients. In our initial meeting, we will learn more about the issue your client is facing. We will the assess the situation and create a plan to protect your client’s settlement. Let us take on this aspect of client service so that you can focus on your core tasks.

For more information or to schedule a consultation, please submit our contact request form or call (877) 242-0022.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

TESTIMONIALS

"I don't think I've directly said "thank you" for helping us with Bridgett’s case. We sent the reduced payment to Medicaid and called Bridgett's mom to tell her approximately how much money was going to be left for Bridgett and she broke down over the telephone. Given only $25k of insurance and a $850k medical bill from the hospital she didn't think Bridgett would ever see a penny."

Tom L. Copeland
Jeffrey Meldon & Associates, P.A.

"Coincidentally, on the day of a recent Synergy Seminar on Medicare & ERISA lien resolution I received a letter on an ERISA lien. This letter followed much back and forth between myself and the recovery vendor for BCBS. Despite my efforts they were adamant there would be no (zero)(zilch)(nada) reduction and provided case law to support their position. I tried Synergy’s Lien Resolution Services since I had just heard their Director of Lien Resolution speak. Synergy got them to reduce their claim by a third in less than ten (10) days. The result was quick and the fee very reasonable. If you have a tough ERISA lien and your typical efforts don’t work, give Synergy a try."

Michael S. Smith, Esq.
Lesser, Lesser, Landy & Smith, PLLC

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