Medicaid Secondary Payer Provision in Bipartisan Budget Undercuts Decisions on Allocation of Medicaid Secondary Payer Recoveries
January 17, 2014

On December 18, 2013, the U.S. Senate passed the Bipartisan Budget Act of 2013 (H.J. Res. 59), which includes a provision that will fundamentally alter the way Medicaid Secondary Payer claims are resolved.  Under the new legislation, Medicaid recovery of funds from a Medicaid beneficiary’s settlement or judgment will no longer be limited to that portion of the award that was intended to cover health care items or services. The Medicaid Secondary Payer statute (42 U.S.C. § 1396a(a)(25)) generally...