Medicaid and Your Settlement
Once a settlement is reached you will execute documents and releases formalizing your acceptance of the settlement. After this is completed, we will notify Medicaid of the settlement and request that Medicaid send us the final amount it claims we must reimburse Medicaid. At this point, we may then be allowed to disburse the settlement proceeds.
In some cases, insurance limits and legal issues may cause Medicaid’s lien to be greater than a recovery or take too much of the recovery. However, there are provisions which allow for a pro rata disbursement of settlement proceeds with other medical lien holders. These pro rata statutes can be found at N.C Gen. Stat. § 44-49 and 44-50. These statutes give the attorney specific direction as to how proceeds can be distributed if all medical providers are unable to be paid in full out of the settlement. However, the North Carolina Statutes on Medicaid will control the disbursement. This portion of your case can be complicated and requires direct discussion with us about your options. If your case must be prorated then you will be required to execute certain documents related to these statutes in order for us to disburse your settlement proceeds.
Lastly, Medicaid requests that its lien be paid out of your settlement funds within thirty (30) days of receipt of your settlement check.