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January 21, 2022

SCOTUS Hears Arguments on Florida Medicaid Reimbursement Dispute

On January 10, the Supreme Court heard oral arguments surrounding the issue of whether a state Medicaid program may seek reimbursement for past medical care by taking personal injury lawsuit settlement funds dedicated to future medical expenses. In Gallardo v. Marstiller, Gianinna Gallardo, who has been in a vegetative state since 2008 after being struck by a truck while getting off a school bus, received a settlement of $800,000 in a lawsuit against the truck’s owner, driver, and school board. The Florida Agency for Healthcare Administration placed a lien on the settlement money, claiming that it was entitled to $300,000 of the portion designated for past and future medical expenses. A Florida district court ruled for Gallardo, asserting that the federal Medicaid Act prohibited the state from seeking reimbursement from portions of settlement designated for future medical expenses. The 11th Circuit reversed in June 2020.