Can Your Personal Injury Claim Impact Medicaid Benefits?

Personal Injury Claim

Although the eligibility criteria for Medicaid benefits remain stringent, the program exists to assist those who cannot afford health insurance or mounting medical bills. Yet, Medicaid eligibility is determined by income and dependents—so what happens if you have Medicaid and are granted a personal injury settlement? 

An accident may cause unnecessary pain and a justifiable need for compensation. Yet, a personal injury settlement may dramatically boost your assets in the eyes of the government. Contact RSH Legal – Iowa Personal Injury Lawyers to learn more. 

Medicaid benefits

Medicaid is a means-tested insurance program jointly run by federal and state Medicaid organizations. Medicaid provides low-income people access to basic medical care at low or no cost. Medicaid beneficiaries are subject to higher eligibility restrictions than Medicare and other government benefit programs. Several of these mandates are retroactive. 

Eligibility for Medicaid

The Medicaid program helps support low-income pregnant women, parents or caregivers of small children, children, and adults who are old or disabled. To be eligible for Medicaid, individuals must meet income and resource limits in most states. Medicaid eligibility is divided into several categories, each with its income limit. Some groups set limits based on how much a person owns, such as bank account balances, automobiles, and land. Medicaid covers some of the following groups: 

  • Children under 21. 
  • People who have received an SSI and a Social Security check within a month at least one time since April 1977 and continue receiving a Social Security check. 
  • Pregnant women. 
  • People who get SSI payments (Supplemental Security Income). 
  • Parents or guardians of a minor child – the child must live with the receiver and be a close family. 
  • People in need of breast or cervical cancer treatment. 
  • A person who lives in a medical facility, such as a nursing home, and has a monthly income of less than $2,349. 

How many recent rulings affect your claim?

The Supreme Court recently determined that state-run Medicaid programs can make personal injury compensation claims. States have the right to seek recovery for Medicaid payments made to a patient later awarded a settlement. The Court’s decision is quite broad in that it includes money from all components of a claim, including medical bills and pain and suffering: It makes settling small-to-medium-sized claims harder. This judgment is less likely to affect you if you get millions in a personal injury settlement. Even if Medicaid does not pursue compensation due to your claim, your settlement may cause your eligibility to be revoked. If you have more questions, you should seek help from an experienced attorney today.