3rd Circuit OKs State Liens On Medicaid Patient Awards

On behalf of a minor Plaintiff, identified as A.H., Veronica Richards claimed that DPW’s practice of collecting the cost of medical care above the actual fees paid is unfair to victims of medical negligence. DPW enrolled A.H. in a managed care organization (MCO) and paid actual fees totalling $25,095.91. In other words, the only expenses incurred by DPW on behalf of A.H. were $25,095.91 yet they asserted a lien of $106,306.88. Veronica Richards refused to pay this amount, insisting that the huge difference between the figures should benefit her minor client. The funds were placed in escrow pending litigation of this important issue. Veronica Richard’s position is that DPW can only be paid back what they actually paid and no more. The 3^rd Circuit held that A.H. has a claim for declaratory and injunctive relief and remanded this issue back to the U.S. District Court Western District of Pennsylvania to address this issue. This is a great opportunity for victims of medical negligence.