How does subrogation apply if you are covered by Medicaid?
Medicaid, which is administered by the Department of Public Welfare (DPW) in Pennsylvania, is not entitled to an automatic lien on your settlement. DPW must intervene in your case and actively assert its right of subrogation. Therefore, DPW has created strict notice requirements that Medicaid recipients must follow. It must be notified even if you do not intend to seek recovery of medical expenses. If you do not reach an agreement with DPW regarding its subrogation claim in advance, it may temporarily block your recovery. If you settle your claim before receiving approval from DPW, it may obtain a court order to set aside your settlement or freeze your recovery until its subrogation claim is satisfied. Remember that DPW is entitled to reimbursement and may actively seek that reimbursement. It is crucial that your counsel negotiate a fair settlement with DPW in advance, and maximize any possible compensation.
DPW may also notify the defendant's insurance company that it plans to intervene. It may require the defendant's insurance company to negotiate with it directly, or to withhold payment until you negotiate a settlement of DPW's subrogation claim. Additionally, the defendant's insurer may require you to negotiate with DPW before it will compensate you. Therefore, both DPW and the defendant's insurance company will force you to address the subrogation issue.
Medicaid recipients must also be mindful of the fact that a large settlement payment may cause a person to lose Medicaid eligibility. The Quinn Law Firm's team approach allows for the planning to lessen the impact of your Medicaid eligibility.
What can the Quinn Law Firm do for you?
As you can see, the legal issues dealing with subrogation rights of Medicaid are extremely complex. Therefore it is extremely important that you hire a law firm with a full understanding of these issues. At the Quinn Law Firm, we have lawyers who possess the skill, knowledge, and experience to navigate these treacherous waters. Contact us today for a FREE CONSULTATION to discuss how we can help you protect your rights and get the most out of your injury case.
