Justices to Consider Narrowing Medicaid Payment Recovery Source

The U.S. Supreme Court announced Friday that it will clear up a dispute over how state Medicaid agencies recoup health-care costs paid on behalf of beneficiaries who later recover compensation for the medical expenses from other people.

The case involves a ruling by the U.S. Court of Appeals for the Eleventh Circuit that allowed Florida’s Medicaid agency to recoup payments made for Gianinna Gallardo’s medical care from a settlement she reached with the person who caused her injuries.

Federal Medicaid law requires states to recover money paid out on behalf of beneficiaries whenever they can. The recoupment, by law, is ...