Supreme Court Expands States' Ability To Recoup Future Medicaid Costs From Tort Recoveries

• Published date: 17 June 2022
• Law Firm: Holland & Knight
• Author: Scott O'Connell

The U.S. Supreme Court interpreted the Medicaid Act on June 6, 2022, to permit state Medicaid programs to recover costs for future medical care that has not yet been provided and may never be provided from Medicaid beneficiaries who obtain a recovery in a tort action. The decision has implications for all Medicaid beneficiaries who obtain settlements or judgments in personal injury actions.

In Gallardo v. Marstiller, Justice Clarence Thomas wrote the opinion for the 7-2 majority, ruling in favor of Florida's Medicaid program. The case surrounded Gianinna Gallardo, who has been in a vegetative state since 2008 when a truck hit her as she was disembarking from a school bus. Gallardo received an $800,000 settlement in a case brought against the school district, the truck's owner and the truck driver, of which $35,367.52 was allocated for past medical expenses but no funds for future medical expenses.

The Medicaid Act requires states to...