So, I have a lawyer that is going to take 1/3 plus a few hundred in costs. My question is how much maximum could medi-cal take from my settlement? My medical bills were in the 6 figures.
Below is part of a Q&A from the California Dept. of Health Care Services website. Below that it an excerpt from section 14124.785 of the Welfare and Institutions Code. I believe this should help answer your question. I wish you a speedy recovery.
Q. Personal injury program has imposed a lien on my settlement. Can I get a reduction?
A. There are three sections of the Welfare and Institutions (W&I) Code that allow for a reduction of a lien. The [Medi-cal] director's recovery is limited to the amount derived from applying Sections 14124.72, 14124.76, and 14124.78. whichever is less. To grant a reduction, we may need a copy of the settlement release documents along with itemized attorney's fees and litigation costs.
"14124.785. The [Medi-cal] director's recovery is limited to the amount derived
from applying Section 14124.72, 14124.76, or 14124.78, whichever is
Medi-cal pays off the bills for a reduced amount. So their lien is smaller than the actual medical bills originally charged. Ask your attorney how much the Medi-cal lien is.
This is a personal injury issue, but your attorney knows and will only pay what is necessary.
All of Ms. Straus’ responses posted on Avvo are intended as helpful information, based solely upon the facts stated in the question, and are not to be relied upon as a full or complete legal opinion. It may not be what you wished to hear, and it does not create an attorney-client relationship. Ms. Straus has been licensed to practice law in California for 33 years. Ms. Straus regrets that she does not provide follow up free advice via email. Good luck.
First of all, I do not know the maximum, but what they take can be negotiated downward. It is very important that this is done as soon as possible. Your lawyer should do this for you, but there are also outside companies that are very experienced in negotiating statutory medical lien claims downward.
50% rule applies. Medi-cal is only entitled to 50% of recovery after attorney fees and costs are taken. So for example of your attorney takes $33,333.33 in fees and xx amount of dollars in costs subtract that from the $100k and medi-cal gets 50% of the remaining monies (assuming their lien is large). Assuming there are no other outstanding liens/bills other than the medi-cal reimbursement you get the remaining 50%.
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