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Medicaid Liens on Settlements After Ahlborn
Last May's U.S. Supreme Court decision in Ark. Dep't of Human Servs. v. Ahlborn, 547 U.S. 268 (2006) ' which held that when a Medicaid benefits recipient settles with a tortfeasor, states seeking recoupment of funds for monies expended on their medical care may do so only from that part of a settlement that was designated as being for past medical expenses ' has so far led to very few reported decisions on the subject. However, two recent cases in New York have applied the teachings of the decision to find that some malpractice claimants who are also Medicaid benefits recipients and who settle with those who allegedly injured them must be allowed to keep for themselves more of the proceeds of their claims.
Plaintiff attorneys in New York, Alabama and other states with similar Medicaid expenditure recovery statutes should be aware of the impact that Ahlborn may have on their clients' rights to retain a larger percentage of their medical malpractice claim settlements.
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