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Medicaid’s Payback Rights

February 23, 2011 By Paul Giannetti

In many instances, plaintiffs in personal injury matters have no insurance. In these circumstances, Medicaid often foots the bill for their medical treatment which is required as a result of their accident. What many people do not know is that Medicaid is legally entitled to be paid back from the proceeds of a personal injury settlement.

If Medicaid has paid out for medical treatment related to the accident for which recovery is sought, they have a legal right to reimbursement. This means that to make the settlement worthwhile, it must be significant enough to repay Medicaid’s lien and adequately compensate the injury victim.

In some instances, Medicaid will agree to accept an amount less than their actual lien to insure that they receive something back and at the same time the injury victim secures some sort of settlement. They are not legally required to reduce the amount of their lien but Medicaid in certain circumstances will do this.

If you have been injured in an accident and would like to learn more about your rights, we would be happy to help.

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