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Medicaid Crisis (access required)

Fourth Circuit ruling says the state can’t automatically grab settlement money as reimbursement

When the parents of a severely disabled girl in North Carolina settled a medical-malpractice case for $2.8 million, the state stepped in and tried to take a nearly $1 million cut for prior Medicaid payments. It was an ordinary request for reimbursement, but the girl’s parents – who face an estimated $40 million in future medical costs for their daughter – decided to contest the state’s lien. And two weeks ago the Fourth Circuit Court of Appeals ruled in their favor.

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