Smalley v. Neb. Dep’t of Health & Human Servs.

This case arose from the settlement of a personal injury lawsuit filed by Edward Smalley, who was seriously injured in a motor vehicle accident. Although Smalley qualified for Medicaid as a result of the accident, the Nebraska Department of Health and Human Services (DHHS), Nebraska's Medicaid administrator, refused to pay Smalley's outstanding medical bills prior to the disposition of his third-party liability claims. To facilitate a settlement of those claims, Smalley's attorney agreed that if DHHS paid the medical bills at the discounted Medicaid rate, Smalley would reimburse DHHS dollar-for-dollar out of the settlement proceeds. After DHHS paid the bills as agreed, Smalley objected to full reimbursement as contrary to federal law. The district court determined that under federal law, DHHS was entitled to reimbursement of only a portion of the Medicaid payments it had made. The Supreme Court reversed, holding that DHHS was entitled to full reimbursement. View "Smalley v. Neb. Dep't of Health & Human Servs." on Justia Law