Every year, more than 11 million Americans are affected by personal injury cases. Surprisingly enough, many of these individuals rely on Medicaid benefits to help cover the necessary medical expenses associated with their injuries and recovery process.
But how does a personal injury settlement affect those same people’s eligibility for Medicaid?
When navigating personal injury settlements, there can much confusion about how they may impact the ability to receive or maintain Medicaid benefits. That’s why it’s essential for anyone facing this situation to understand exactly how a settlement could affect them.
After all, no one wants to risk losing out on much-needed healthcare coverage because they weren’t aware of the rules surrounding Medicaid payments.
The good news is that there are ways to protect yourself when dealing with a personal injury settlement and its effects on your Medicaid benefits.
Keep reading to learn more!
Overview Of Medicaid Benefits
Medicaid benefits are a lifeline for many individuals in need of financial assistance. They provide incredible support to those who rely on them and can be the difference between stability and hardship.
Generally speaking, Medicaid provides healthcare coverage for:
- Low-income families
- Pregnant women
- Elderly adults
- Blind people, and
- Persons with disabilities
Depending on individual circumstances, eligibility may vary widely. However, certain federal guidelines must be met to receive these services. To determine eligibility, one must look at income levels, assets owned, and other criteria set out by the government.
Personal Injury Settlements And Medicaid Eligibility
Personal injury settlements are countable assets for Medicaid eligibility. Therefore, receiving a settlement may negatively impact your ability to access healthcare services provided by the program.
For instance, if you receive a large sum of money from your personal injury settlement and deposit it into your checking or savings account, you may no longer be eligible for certain Medicaid coverage based on income limit requirements.
Therefore, if you’re expecting a personal injury settlement, consult a legal professional about how it might affect your eligibility for Medicaid before making any decisions regarding its usage.
Strategies To Protect Medicaid Benefits After A Personal Injury Settlement
Navigating the process of a personal injury settlement can be daunting and complex. With Medicaid benefits potentially in jeopardy, it’s important to have a game plan that allows for protection from any potential negative impacts. Here are some strategies to help secure medical assistance after settling an injury claim.
The first step is understanding what exactly constitutes countable resources regarding Medicaid eligibility. This can include cash on hand, real estate holdings, stocks or bonds, life insurance policies, and other investments.
Making sure these assets do not exceed the resource limits set by Medicaid becomes essential while planning out how to approach a personal injury settlement so that there are no surprises down the line when re-evaluating one’s eligibility status.
Additionally, setting up something like an irrevocable trust with part of the settlement money may prove beneficial towards preserving existing Medicaid coverage without putting those funds at risk of being counted against asset limits.
Getting legal counsel before deciding on trusts or other financial instruments related to a personal injury case outcome is best.
How Personal Injury Lawyers Can Help
Did you know that over 3 million people in the US receive personal injury settlements every year? This means it is vital to understand how these can affect Medicaid benefits. Lawyers are an excellent resource for navigating this complex process, so here’s what they can do to help.
Personal injury lawyers can provide clear advice on understanding your rights and responsibilities when settling an injury case. They will be able to explain how much of your settlement might be covered by Medicaid or other state-run programs.
Here are three key ways attorneys can help:
- Advise on legal eligibility for Medicaid coverage after a settlement;
- Explain how any lump sum payment could be divided among family members;
- Provide information about appealing denials from insurance companies or government agencies related to medical care or personal injuries.
Having an experienced attorney who understands the complexities of both Medicaid rules and personal injury law can make all the difference between getting the support you need and struggling with paperwork and bureaucracy indefinitely.
It pays to have someone knowledgeable guide you through the process – not only financially but also emotionally.
Protect Your Right to Compensation and Benefits. Get Help Today.
If you’re looking forward to a personal injury settlement, you should be aware of how that settlement will affect your Medicaid benefits.
To protect yourself and make sure you get the most out of a potential settlement, contact an experienced attorney. A knowledgeable attorney will help facilitate negotiations with insurance companies and ensure that your rights are protected throughout the process, providing guidance on how best to manage any changes to your Medicaid coverage.
Doing so gives you peace of mind knowing that you’re getting what’s rightfully yours after an accident.
If you or a loved one has been injured, contact the team at Injury.io today.