Georgia Legal Guide: What Will Medicaid Pay for After a Car Accident?
Can Medicaid take money from my settlement that was designated for pain and suffering?
No. The U.S. Supreme Court ruled in Arkansas Department of Health and Human Services v. Ahlborn that Medicaid’s recovery is limited to the portion of your settlement that represents medical expenses. They cannot take compensation allocated for pain and suffering, lost wages, or other nonmedical damages.
What happens if I don’t notify Medicaid before settling my case?
Failing to provide the required 10-day notice under O.C.G.A. § 33-24-56.1(g) can cause serious legal consequences. Medicaid still has the right to claim reimbursement and you could face other sanctions.
Does the Georgia “complete compensation rule” protect me from Medicaid reimbursement?
Georgia’s reimbursement statute (O.C.G.A. § 33-24-56.1) specifically exempts the Department of Community Health’s rights from its provisions. This means Medicaid can seek reimbursement even if you haven’t been fully compensated for all your losses.
Can Medicaid negotiate or reduce its lien amount?
Yes. Under O.C.G.A. § 49-4-148(a), the commissioner of community health has authority to “compromise, settle, and execute a release of any such claim or waive, expressly, any such claim, in whole or in part, for the convenience of the Department of Community Health.” An experienced attorney may be able to negotiate a reduction.
If the at-fault driver has no insurance, will Medicaid still cover my medical bills?
Yes. Medicaid coverage is based on your eligibility status, not on whether the person who injured you has insurance. Your medical expenses will be covered, though Medicaid will still assert its lien on any money you recover from the at-fault party or through your own uninsured motorist coverage.
