California law gives Medi-Cal members the right to receive reimbursement from personal injury settlements. The personal injury attorneys at Ellis Injury Law in Los Angeles have regularly represented accident victims who have Medi-Cal health insurance coverage. When the personal injury settlement is resolved and paid, the accident victim's personal injury attorney will send the funds to the Department and verify that the liens have been extinguished. If you receive millions in a personal injury settlement, this ruling is less likely to affect you negatively. Under no circumstances is DHCS entitled to receive more settlement funds than the beneficiary after the reduction in attorney fees and costs.
Simply put, Medicaid has the right to collect a portion of your settlement as reimbursement for the costs of medical care related to your injury related to an accident. A personal injury settlement will not cause a cancellation or have any other adverse effect on the injured party's Medi-Cal coverage. Dealing with the aftermath of a personal injury can be overwhelming, especially when you're not sure how the claim for compensation might affect your future. Medi-Cal and the Department of Health Care Services can only claim an amount equal to what they previously paid for the accident victim's medical services.
By employing these strategies, an attorney can help you overcome the complexities of managing a personal injury claim while preserving your eligibility for Medicaid. You can continue to use the trust money to pay for any medical expenses beyond what your Medi-Cal coverage pays. DHCS recovery is limited to the part of the agreement that “represents payment for medical expenses or medical care provided on behalf of the beneficiary”. If you file a personal injury lawsuit as a Medi-Cal member, you must notify the California Department of Health Care Services (DHCS) within 30 days of filing the lawsuit.
In addition, when applying for Medi-Cal coverage, benefits can be retroactive for up to three months. Unfortunately, a personal injury claim can affect the amount of money you receive to reduce your medical costs.