The Supreme Court has been in the news a lot lately, but you might have missed this particular ruling. According to Bloomberg, “The high court held that states providing care to Medicaid patients can seek reimbursement from personal injury settlement money allocated for the patient’s future medical expenses. Attorneys say the justices’ broad reading of the Medicaid statute will discourage beneficiaries from taking the risk of filing lawsuits in the first place.”

This ruling, written by Justice Clarence Thomas, could prevent people from filing personal injury suits in the future. While some plaintiffs are awarded significant damages, the vast majority of cases are settled for lower amounts.

Gallardo v. Marstiller

The Gallardo v. Marstiller ruling was handed down on June 6, 2022. The case involved an $800,000 settlement paid to the parents of a child left in a persistent vegetative state. Florida argued that it was owed 37.5 percent of the settlement, which is the percentage Medicaid sets for past and future expenses.

The Court held that states are indeed entitled to “claw back” that 37.5 percent from personal injury awards for future medical expenses, for the expenses already incurred.

What does this mean for personal injury lawsuits?

Bloomberg reports, “States are required under the Medicaid Act to seek reimbursement from third parties that are liable for a Medicaid recipient’s care, including jury awards and settlements from third parties.” However, since 1965, Medicaid was not allowed to make claims against a beneficiary’s property.

Now, thanks to the Gallardo ruling, states can tap into future medical expenses and prior expenses. This might have a “chilling effect” on plaintiffs filing lawsuits, particularly in areas where drivers are only required to carry low amounts of liability insurance. Because insurance generally limits the amount a plaintiff can recover, this could be devastating to personal injury plaintiffs. It may also negatively affect state Medicaid programs, too, since there will be less opportunity for Medicaid to get reimbursed for low-dollar settlements.

Does this mean you should skip the personal injury lawsuit? No: it’s always worth calling the Law Offices of Tim Misny to discuss your legal options. Right now, no one knows how the ruling will affect plaintiffs in practice. Talking to an experienced personal injury lawyer is the best way to learn about your legal options. We’ll make sure you understand what’s at stake, and how we can recover maximum compensation.

Discuss your case with an Ohio personal injury lawyer today

Have you been a victim of someone else’s negligence? When you’re injured, I’ll Make Them Pay!® Call my office at (800) 556-4769 so that I can evaluate your case right away. We may be able to recover compensation for your injuries, pain and suffering, lost wages and more.