If you were injured due to someone else’s negligence, you could be eligible to collect financial compensation in the form of a personal injury settlement. If, however, you receive Medicaid, you might be concerned about the impact your settlement award may have on your benefits. Medicaid is a state-funded form of medical coverage for persons of limited means. To be eligible to receive Medicaid benefits, applicants are required to meet specific asset and income requirements. If you expect to collect a settlement, you need to understand that it could impact your Medicaid benefits and eligibility for other government programs. If you have concerns about the potential effects of your settlement award on your Medicaid eligibility, schedule a free consultation with the experienced Hampton personal injury lawyers at Shapiro, Washburn & Sharp today.
Will a High-Dollar Settlement Jeopardize My Government Benefits?
As with most questions concerning legal matters, the answer is, “It depends.” One of the primary determining factors is the type of benefits you receive, which could be either:
Needs-Based Benefits
Supplemental Security Income and Medicaid are the two most commonly-issued need-based government benefits. Unfortunately, a high-value personal injury settlement can and will jeopardize any needs-based benefits you receive.
Some additional needs-based benefits that could be impacted by a settlement are:
- Section 8 Housing
- Supplemental Nutrition Assistance Program
- Veteran’s Pensions Benefits
- Temporary Assistance for Needy Families
- Children’s Health Insurance Program
- Low Income Home Energy Assistance Program
The qualifications for each of these benefits are different, so consulting a Hampton personal injury lawyer is paramount if you hope to maintain your eligibility.
Entitlement Benefits
Common entitlement benefits include Veteran’s Affairs benefits, Social Security Disability Insurance, and Medicare. Generally speaking, with the exception of Veteran’s Pensions, these benefits will not be impacted by a personal injury settlement.
What Can I Do to Protect My Eligibility for Medicaid?
Generally speaking, being awarded a settlement does not immediately disqualify you from receiving Medicaid, although the money could be classed as resources or income, which can affect your eligibility down the road. For instance, if you collect your compensation in a single lump sum, it could potentially be considered a portion of your income for the month it was received, which will almost certainly, for that month, cause it to surpass the program’s threshold for eligibility. This can lead to a loss of your benefits for that same month.
If you are pursuing financial compensation via a lawsuit and you are on Medicaid, it is vital to discuss your case with a skilled Hampton personal injury lawyer who has prior experience minimizing the impacts of settlement awards on Medicaid and other government benefit programs.
Can Medicaid Take a Portion of My Settlement as Reimbursement for My Medical Bills?
There are some cases in which Medicaid could be entitled to recompense via subrogation or a lien. Simply put, Medicaid has the right to collect a share of your settlement as reimbursement for the costs of the medical care associated with your accident-related injury.
Procedures and rules pertaining to Medicaid subrogation rights and liens are complex. By and large, if Medicaid implements a subrogation or lien, the program needs to be informed of your award and give a chance to make a claim. If a subrogation claim or lien is asserted, it is crucial to partner with a knowledgeable lawyer who is capable of negotiating a smaller payment or having it waived entirely.
What Is a Structured Settlement?
One way of reducing the impact of your settlement on your Medicaid benefits is to structure your payments. This means entering into an agreement that allows your funds to be paid out over a specified length of time instead of all at once. Structuring your payments can help prevent the resource and income issues that often accompany lump sum payments.
When your settlement money is paid out over time, it is not viewed as monthly income and may not be viewed as a future resource, which could allow you to maintain your eligibility for Medicaid and other government programs. A structured settlement could also minimize or prevent a subrogation or lien.
Talk to a Hampton Personal Injury Lawyer
It is worth noting that a structured settlement is not appropriate in all personal injury cases. The experienced Hampton personal injury lawyers at Shapiro, Washburn & Sharp have been handling personal injury cases, including those involving Medicaid recipients, since 1985. In one recent case, we achieved a $1.85 million wrongful death settlement for the family of a Navy servicemember who was killed by a negligent truck driver. If you would like to discuss your case and find out if a structured settlement is the right choice for you, call our Virginia Beach office at (833) 997-1774 or fill out our online contact form. We also have satellite offices in Hampton, Norfolk, and Portsmouth.