The United States Supreme Court recently decided Gallardo et al. v. Marstiller, an opinion that changes the way Medicaid liens may be calculated in personal injury settlements and judgments. In a seven to two opinion, the Justices held that Medicaid may seek recovery not only of past medical expenses paid on behalf of a Plaintiff, but also future medical expenses likely to be paid.
The burden will remain on state Medicaid agencies to prove the amount of future medical expenses they will likely pay.
An obvious question is whether a plaintiff who obtains a large personal injury settlement will even qualify for future Medicaid services. One thing that seems obvious to me, as a personal injury attorney, is that settlements will be made more difficult to obtain when defendants and their insurers demand a release from a state Medicaid agency before funding a settlement.
A copy of the Gallardo opinion can be read below: