Q: If I settle before even filing a lawsuit, does medicaid have a lien on my settlement?
If I settle before even filing a lawsuit, does medicaid have a lien on my settlement? If so, do I have to report it to them. On one legal website it said:
The process of reimbursing Medicaid and Medicare is referred to as "subrogation." It's administered by the Centers for Medicare and Medicaid Services (CMS). If there is a CMS lien on your settlement proceeds, it takes precedence over all other liens.** You don't have to pay CMS back unless they ask you to, but they have a six year statute of limitations period for reimbursement.***
Now, does that mean I don't have to tell them about the settlement?
Also, how can I find out if they already have a lien on any future settlements pertaining to my injury?
A:
The website is perhaps inaccurate. In most states the Department administering Medical Assistance does their own subro, as it's a state/federal deal. Both Medicare & Medical Assistance liens exist and must be paid out of settlement. With all due respect to the website you got the misinformation from, there are cases saying that you must aggressively pursue CMS and unless you are told in writing they are not asserting a lien you must assume they are and be prepared to pay them back.Further your benefits could be jeopardized either way.
With MA there is usually a statutory limit of what they can get back so you get some of the settlement. If you are on MA you also need to work out a "spendown" program for any amount above $2500 that is left to you after the MA cut otherwise you will be "over assets".
You should get the advice of an attorney before you resolve a claim as you have indicated you have. Members of CAOC give free consultations. I suggest you get one.
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