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Goheagan v. Perkins

Citations: 197 So. 3d 112; 2016 Fla. App. LEXIS 11106; 2016 WL 3911483Docket: No. 4D14-4843

Court: District Court of Appeal of Florida; July 20, 2016; Florida; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by the Estate of a deceased Medicaid recipient, contesting a trial court order enforcing full reimbursement of a Medicaid lien from wrongful death settlement proceeds to the Florida Agency for Health Care Administration (AHCA). The primary legal issue centers on whether section 409.910(11)(f) of the Florida Statutes is preempted by federal Medicaid laws, particularly the anti-lien provision. The trial court ruled that the state statute is not preempted and mandated full reimbursement of the Medicaid lien from the settlement. The Estate argued for a reduction of the lien proportional to Medicaid's contribution to the total medical expenses incurred but was denied. The appellate court reviewed the case de novo and affirmed the trial court's decision, emphasizing that the federal anti-lien statute applies only to living Medicaid recipients, not to estates or in wrongful death scenarios. Consequently, the Florida Medicaid Act's provisions allowing the state to recover medical expenses from third-party settlements were upheld, prioritizing public welfare program funding over the estate's distribution interests.

Legal Issues Addressed

Application of State Law in Wrongful Death Cases

Application: The court held that Florida's statutory provisions govern the allocation of settlement proceeds in wrongful death cases, overriding federal preemption claims.

Reasoning: The Court reiterated that section 409.910 provided a default allocation of settlement proceeds subject to Medicaid liens, which could conflict with federal statutes only if the allocation predominantly covered non-medical expenses.

Federal Preemption in Medicaid Lien Cases

Application: The court determined that federal Medicaid law's anti-lien provision does not preempt Florida's statute allowing Medicaid liens on wrongful death recoveries.

Reasoning: The Court agreed, stating that section 1396p(a)(1) reflects Congressional intent for the anti-lien statute to apply solely to living Medicaid recipients, not to estates or beneficiaries in wrongful death cases.

Judicial Interpretation of Medicaid Recovery Rules

Application: The court emphasized that states have the right to recover medical expenses from settlements under specific statutory frameworks, which do not contravene federal law.

Reasoning: The state's recovery is capped at the amount paid by Medicaid. Additionally, under the “anti-lien statute,” no liens can be placed on an individual's property due to Medicaid assistance before death, with certain exceptions.

Medicaid Third-Party Liability Act

Application: The court ruled that the Florida Medicaid Act requires full reimbursement to Medicaid from wrongful death settlements before any distribution to the estate or survivors.

Reasoning: Section 409.910(11)(f) mandates that after deducting attorney's fees (25% of the judgment or settlement) and costs, one-half of the remaining recovery must be paid to the Agency for Health Care Administration (AHCA) up to the total amount of medical assistance provided.