How Medicaid Can Effect a Kennesaw, Georgia Car Accident Claim
Medicaid is a state and federally-funded program that provides medical care and other services to low-income people. The Georgia Department of Community Health administers the Medicaid program as well as PeachCare, which provides medical assistance to uninsured children across Georgia.
If a person receiving Medicaid is injured in an accident, there may be certain consequences. Specifically, if a plaintiff sues a tortfeasor and attains an award due to injuries sustained in the accident, such an award may affect the plaintiff’s Medicaid coverage. In addition, there may be statutory requirements that compel the state to place a lien on a monetary award. As will be explained, there may be a down side to attaining monetary remuneration in the event of an accident.
Medicaid Coverage
Note that Medicare and Medicaid are not the same. Medicare generally covers adults sixty-five and older and those eligible for social security benefits by providing them with medical benefits and prescription drug coverage. Medicare is a federally-funded and operated program and there are no income or asset restrictions. In contrast, Medicaid is funded both at the state and federal levels, with each state tailoring the program for its specific needs. Each state is responsible for creating guidelines and administration of the program. To be eligible for Medicaid, people must fall within certain income and asset guidelines.
Personal Injury Award
Someone injured in a motor vehicle accident often suffers significantly from the accident. The victim goes to a lawyer who specializes in personal injury law and advocates on behalf of his client. There is a strong possibility that the lawyer will be successful at attaining a verdict or reaching a settlement that substantially improves the injured person’s circumstance.
The downside of the personal injury award is that if the victim is a Medicaid beneficiary, that person may lose Medicaid benefits. As mentioned, there are income and asset guidelines for Medicaid beneficiaries. The victim, as a result of the award, may lose crucial Medicaid benefits.
Special Needs Trust
A victim of a motor vehicle accident should not refrain from aggressively suing the tortfeasor because a personal injury award may affect Medicaid benefits; a victim should always aggressively pursue rightful justice. To avoid losing Medicaid benefits, a victim should set up a special needs trust and place award money in that trust. Under Georgia law, assets placed into a special needs trust are not deemed available resources for Medicaid purposes.
A special needs trust is a discretionary spendthrift trust created for people with disabilities. A spendthrift trust is administered by a trustee (not the beneficiary) who has full autonomy to use the money for the benefit of the beneficiary. The beneficiary has no control over the funds. As a result, a personal injury victim can maximize his well-deserved reward without losing important Medicaid benefits.
Contact us
If you’ve suffered an injury due to a car accident, contact the personal injury law firm of Joel Williams, a Cobb County, Georgia, lawyer who fights for injury victims. If you have questions or would like to discuss your case, please call our office today at 833 – LEGALGA or visit us at our office.
