Congress Reverses Ahlborn & Wos - Medicaid Liens Now Superliens

Posted date in Liens

Unfortunately, as part of the budget signed by President Obama on the 26th of December (Merry Xmas), a legislative fix for Ahlborn was made law.  Now, Medicaid liens are like Medicare liens in the sense that they are super liens.  Medicaid will be able to assert its lien against the entirety of the settlement instead of the portion attributable to past medical expenses.  The new provisions go into effect on 10/1/14.  The pertinent sections are found below.

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[From the Act as passed]





(1) STATE PLAN REQUIREMENTS.--Section 1902(a)(25) of the Social Security Act (42 U.S.C. 1396a(a)(25)) is amended--

(A) in subparagraph (B), by striking ''to the extent of such legal liability''; and

(B) in subparagraph (H), by striking ''payment by any other party for such health care items or services'' and inserting ''any payments by such third party''.

(2) ASSIGNMENT OF RIGHTS OF PAYMENT.--Section 1912(a)(1)(A) of such Act (42 U.S.C.  1396k(a)(1)(A)) is amended by striking ''payment for  medical care from any third party'' and inserting  ''any payment from a third party that has a legal liability to pay for care and services available under the plan''.

(3) LIENS.--Section 1917(a)(1)(A) of such Act (42 U.S.C. 1396p(a)(1)(A)) is amended to read as follows:

 ''(A) pursuant to--

''(i) the judgment of a court on account of benefits incorrectly paid on behalf of such individual, or

''(ii) rights acquired by or assigned to the State in accordance with section 1902(a)(25)(H) or section 1912(a)(1)(A), or''.

 (c) EFFECTIVE DATE.--The amendments made by this section shall take effect on October 1, 2014.