California Court has Jurisdiction to Order State to Refund Overpaid Medicaid Lien

Daniel Branson, a California resident, received a settlement amount for his medical malpractice suit. The state of California filed a lien on the settlement amount, asking for reimbursements for Medicaid damages it had paid for Branson. Branson paid the state’s requested amount even though the state did not specify how it calculated the amount. The state asked for another reimbursement after Branson received an additional settlement amount. Branson filed a motion asking the court to determine the reasonable amount of the Medicaid lien and for the state to refund his overpayment.

The trial court held that Branson overpaid the state, but it concluded that it lacked jurisdiction to order a refund from the state. In Branson v. Sharp Healthcare, the California Court of Appeals held that when a Medicaid recipient overpays a state Medicaid lien on settlement funds from a third party, the court has jurisdiction to order the state to refund the overpayment to the Medicaid recipient.

See Man Who Overpaid Medicaid Lien on Settlement Proceeds is Entitled to Refund, ElderLawAnswers, Apr. 2, 2010.