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Supreme Court Argument - Arkansas Dept of Human Services v. Ahlborn (Liens On Personal Injury Recoveries)

Sku:
OYZ868
Price:
US$40.00
Total Time:
68
Credits:
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Course Description

This is another in the series of CLE courses brought to you by CLE123, Inc. and Oyez.org featuring an oral argument before the Supreme Court of the United States and the Decision. This is a must listen for all personal injury attorneys as it deals with the validity of Medicaid Liens on personal injury settlements.

 

Facts of the Case

Heidi Ahlborn was injured and permanently disabled in a car accident. She received Medicare payments totaling $215,645 through the Arkansas Department of Human Services (ADHS) to pay for her medical treatment. In order to be eligible for the Medicare payments, Arkansas law required Ahlborn to give the ADHS the "right to any settlement, judgment, or award" she might receive because of the accident, up to the amount Medicare had paid for her treatment.

Several years after the accident, Ahlborn received $550,000 in a settlement with the parties liable for her injuries. The sum covered her medical treatment as well as pain and suffering, lost earnings, and her lost earning potential in the future. Only $35,581 of the settlement was earmarked for her medical treatment, however. When the ADHS demanded that she repay the full $215,645, therefore, Ahlborn refused, and the issue went to a federal district court in Arkansas. The judge sided with the ADHS, ruling that it was not unreasonable for Arkansas to require Ahlborn to agree to repay them fully from any settlement she might receive in order to be eligible, even if the portion specifically allocated for medical treatment was less than the amount demanded by Medicaid.

An 8th Circuit Court of Appeals panel reversed, however, finding that seizing money from her settlement that had not been earmarked for medical treatment would violate federal Medicaid regulations, which forbid state governments from seizing the property of Medicaid recipients in order to recover money spent on treatment. The panel therefore ordered that Ahlborn repay just $35,581 to the ADHS.

Question

Do federal Medicaid statutes limit the amount a state can recover in reimbursement from a third-party payment to the portion earmarked for medical treatment?

About the Lecturer

Mr. Jeffrey B. Gold Esq.

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