Most people don't understand Medicaid at all, and why one must pay Medicaid back if you have a car crash case.
If you have a personal injury case, and your bills are paid for by Medicaid you must pay back Medicaid after your case is over. Here is why.
First, Medicaid is not Medicare. It is totally different. Medicare is paid for through payroll taxes, and premiums. Medicaid is paid for by the federal government and the states. In this sense, Medicare is paid for by those who receive the benefits, while Medicaid is simply welfare. In Connecticut it is called Husky.
Medicaid is paid for by a combination of federal and state funds. Since the federal government provides funds it adds requirements for Medicaid programs. Therefore, each state administers its own Medicaid program with the minimum standards and other rules mandated by the federal governement. This is fair since the federal governement is providing a large part of the funds, it should be able to set some rules.
One of the requirements imposed by the federal program is that the state must create a process underwhich it seeks reimbursement for medical bills paid for that were caused by a third party. Even if that was not a federal mandate, most state's would probably create such a requirement since most state's contribute large amount of money to their Medicaid program. In Connecticut, the Medicaid program is a huge part of the State budget.
The bottom line is that if you are on Medicaid you are receiving a great benefit from the goverment. So, if you have your medical bills paid for by Connecticut's Medicaid probram, and you receive compensation for those medical bills (paid for by Medicaid) then under the law you have to pay that back to Connecticut. That is the law, and most people believe it to be fair.
I hope this give you some insight into Medicaid, and why you have to pay it back.
If you have some legal questions about Medicaid and how it will impact your personal injury case contact The Bartinik Law Firm, PC., 100 Fort Hill Road, Groton, CT., 860-445-8521 or toll free at 888-717-4211.