President Obama Signs Medicaid Recovery Mandate into Law

  • Precision
  • December 31st, 2013

It's getting tougher out there.

On December 26, 2013, President Obama signed the Bipartisan Budget Act of 2013. Section 202 of the Act is entitled "Strengthening Medicaid Third-Party Liability." The new law amends portions of the federal Medicaid Act in an attempt to override the application of the allocation theory derived from Arkansas Dept. of Health & Human Srvs. v. Ahlborn, 547 U.S. 268 (2006). There are three main amendments to the statutes which take effect on October 1, 2014.

First, 42 U.S.C. § 1396a(a)(25)(H) has been amended, which now provides that "to the extent that payment has been made under the State plan for medical assistance in any case where a third party has a legal liability to make payment for such assistance * * * the State is considered to have acquired the rights of such individual to any payments by such third party."

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President Obama Signs Medicaid Recovery Mandate into Law
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