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Colorado Accident & Injury Law Part III cont. Medicare & Medicaid Liens

May 18, 2009 by The Sawaya Law Firm


1. Medicaid:

Medicaid is a state government program that is needs based. It has long been the Plaintiff attorney’s practice to consider and resolve all Medicaid liens in the resolution of the automobile case.

  • Plaintiff’s counsel is required to identify which bills have been paid by Medicaid.
  • Prompt notification to Medicaid is highly advised, to determine the amount of accident bills paid by Medicaid and to whom.
  • Prompt discussion of the case will expedite a settlement resolution when that issue arises. Delays can be avoided by being timely and prompt.
  • Medicaid will routinely discount by about 25 percent to account for attorneys’ fees and that amount may be higher depending upon the case.
  • Medicaid can be convinced to resolve a case for more substantial discounts if a cogent and believable argument can be made for why the case is being resolved for less than full compensation to the Plaintiff.
  • If the Plaintiff is on Medicaid, or will be eligible for Medicaid but for the settlement being reached, a set-aside trust will be accepted by Medicaid to allow for the payment of non-essential personal needs of the Plaintiff.
  • There are experts who perform such service, and in the complicated case it is advised that an expert be retained.
  • There is now a simple form of set-aside trust that Colorado Medicaid will accept. The contact person at the State of Colorado Medicaid is Michelle Daniels, 303-866-5410. She handles Trusts questions for Medicaid.

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