"During nearly two hours of oral arguments, the justices wrestled with how broad or limiting various provisions of the Medicaid Act should be read. All justices agreed that the Medicaid Act generally prohibits states from imposing a lien on a Medicaid recipient’s property to recover payments they’ve made, but also allow states to recover damages from the tortfeasor, the individual or corporate entity who injured the beneficiary. At issue in Gallardo then is whether the state’s recoveries are limited to the amount of money allocated in the settlement for past medical expenses, or whether the state can recoup monies from settlement funds allocated for future medicals, and whether Medicaid can continue to recoup payments made throughout the time period the beneficiary remains eligible for Medicaid.”
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