Medicaid and Medicare are government programs that provide health insurance to eligible individuals. Medicaid provides health insurance to low-income individuals, while Medicare provides health insurance to individuals who are 65 or older, or who have certain disabilities.
If a person receives medical care through Medicaid or Medicare, the government programs may have a legal right to seek reimbursement for the cost of the care. This is known as a Medicaid or Medicare lien.
If a person files a lawsuit to seek compensation for injuries or damages, the Medicaid or Medicare lien may affect the lawsuit in several ways. For example, if the person is awarded a settlement or judgment, the government programs may have a right to a portion of the proceeds to cover the cost of the medical care. This may reduce the amount of money that the person receives from the lawsuit.
In some cases, the Medicaid or Medicare lien may be waived or reduced if the person can demonstrate that paying the lien would cause financial hardship. It’s important to consult with an attorney who is familiar with Medicaid and Medicare liens to determine the best course of action in a particular case.