Geiser held that it would be inequitable for the Department to recoup the additional public charge component of a medical assistance payment from a private citizen. In this scenario, however, there is no private citizen interest. As a practical matter, however, this issue is not likely to arise. The Department will likely seek only to recover actual costs as this may best facilitate quick settlement and avoid costly legal fees. Survey of the Law in Other Jurisdictions Jurisdictions are divided on the issue of whether all settlement proceeds are available to satisfy the state's medical assistance program lien.
Some states explicitly allow full recovery regardless of the intended allocation of the proceeds.
According to a Florida statute, a settlement agreement shall not impair the state department's rights of recovery under a Medicaid lien. Illinois and Massachusetts have statutes that seemingly allow full recovery. 215 Ill. Comp.