Supreme Court Throws Out Medicaid Tort Recovery Law

Law360, New York (March 20, 2013, 3:15 PM EDT) -- In a win for doctors hoping to avoid negligence trials, the U.S. Supreme Court on Wednesday voided a North Carolina law allowing Medicaid to seize one-third of personal injury settlements as reimbursement for health care costs, citing a federal ban on recouping money not awarded for medical expenses.

The 6-3 ruling, which upheld a Fourth Circuit decision, found the Tar Heel State ignored the Medicaid Act’s “clear mandate” against grabbing compensation for pain and suffering, lost income or other nonmedical expenses by applying a “one-size-fits-all statutory...
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