Medicaid Clawback Ruling Threatens to Dash Personal Injury Suits

A Supreme Court ruling allowing state Medicaid programs to claw back a greater share of personal injury awards could close the courthouse door to beneficiaries with less-than-blockbuster claims.

The high court held that states providing care to Medicaid patients can seek reimbursement from personal injury settlement money allocated for the patient’s future medical expenses. Attorneys say the justices’ broad reading of the Medicaid statute will discourage beneficiaries from taking the risk of filing lawsuits in the first place.

“The Court’s decision absolutely will reduce litigants’ incentives to bring personal injury lawsuits,” said Nora Engstrom, a professor at Stanford Law School. ...