Under Medicaid’s so-called “anti-lien” provision, with certain exceptions states my notseek to recover from a living Medicaid recipient benefits paid on his/her behalf. “No lien may be imposed against the property of any individual prior to his death on account of medical assistance paid or to be paid on his behalf.” See Section 1396p (a). Medicaid is authorized to seek reimbursement from the recipient’s estate after his/her death. See Section 1396p (b).
However, personal injury attorneys are familiar with one significant exception to §1396p(a)’s anti-lifetime-lien provision. States must “take all reasonable measures to ascertain the legal liability of third parties … to pay for care and services available under the plan,” and to “seek reimbursement for such assistance to the extent of such legal liability.” To effectuate these requirements, New Jersey has enacted N.J.S.A. 30:4D-7.1, which provides that a Medicaid recipient “shall immediately reimburse [New Jersey's Division of Medical Assistance and Health Services (DMAHS)] in full from the proceeds of any settlement [or] judgment … against any such third party.” Other states have enacted similar provisions.
