MEDICAID LIEN FAQ

Why is Medicaid different in every state?

Medicaid is a joint federal-state program. The federal government contributes approximately 50% to fund the program. As a result, states pay the remaining costs and are given wide discretion about whom to cover and what benefits to provide. Each state has an agency in place that manages the individual state’s program. Some states allow county and city governments to administer the program. Alternatively, other states, such as Florida, hire recovery contractors.

Can I release funds to my client before the lien has been resolved?

It is not suggested that funds be released before the liens are resolved and confirmed in writing. In cases where there may be need-based benefits such as Medicaid/SSI, the distribution of funds may affect the claimant’s eligibility. Distributing funds before a valid lien is resolved can have consequences for both attorney and client. However, in some cases, if there is a guarantee that a lien holder will not increase their lien amount, a holdback may be recommended.

Can our client lose their benefits after receiving a settlement?

If your client is receiving a need-based (low income) benefit like Medicaid or SSI, a settlement or award may impact their eligibility for benefits. In order to protect eligibility for needs-based public benefits, a special needs trust should be considered.

REDUCING LIENS

TESTIMONIALS

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