What is Medicaid?
Medicaid is a health insurance program for low-income individuals and families. Qualification for Medicaid is based on economic need. It provides payment to medical providers for treatment and services if you are sick or hurt. However, if you are hurt in an accident caused by someone’s negligence, then Medicaid is entitled to put a lien on any future recovery to be reimbursed for the payments it made on your behalf.
These subrogation and lien rights for Medicaid are outlined in N.C. Gen. Stat. § 108A-57. This statute specifically requires that any attorney retained by the beneficiary who is receiving Medicaid services shall, out of the proceeds obtained on behalf of the beneficiary by settlement with, judgment against, or otherwise from a third party by reason of injury or death, distribute to the Department the amount of assistance paid by the Department.