North Carolina No Longer Entitled to One-Third of Medical Malpractice Award

As most Medicaid recipients know, at the end of that recipient’s life, Medicaid will be allowed to recover against their estate in repayment for Medicaid’s expenditures on their care. Medicaid is also allowed to demand reimbursement when a Medicaid recipient is awarded damages in a medical malpractice suit.

Until March of 2013, North Carolina’s Department of Health and Human Services (DHHS) had been enforcing North Carolina state law that enabled DHHS to automatically recover the lesser of either: a) full reimbursement of Medicaid’s expenses; or b) one-third of the total medical malpractice award, regardless of how much was designated for medical expenses.  Read more

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