News & Perspectives

U.S. Supreme Court Decides That States Can Seek Reimbursement for Future Medical Expenses from Medicaid Beneficiaries’ Injury Settlements

5. July 2022 Sam Fish Health

On June 6, 2022, the U.S. Supreme Court held, in a seven-to-two decision, that the Medicaid statute permits a state to seek reimbursement from settlement payments allocated for future medical care.

The case is Gallardo v. Marstiller, No. 20-1263.

The majority opinion found that section 1396k(a)(1)(A) of the Medicaid Act, which requires states to seek payment for medical care from any third party, allowed the State of Florida to require reimbursement for a settlement amount representing “payment for medical care,” past or future.