Does Medicaid Have a Lien against My Virginia Workers Compensation Case?

Clients frequently ask about the importance of pursuing legal action when their medical bills have been paid all, or in part, by Medicaid. Although it may seem that things are being taken care of, it is necessary to pay back the government for Medicaid. If an injured victim fails to “keep medicaid in the loop,” there could be harsh consequences, according to experienced Herndon personal injury lawyer Doug Landau

In a recent case at Abrams Landau, our client’s Worker’s Compensation claim was settled. However, a problem arose as Medicaid was covering the client’s medical care. This was because the comp claim was initially denied. Because of this dispute, when settlement was been reached, the government invoked a significant “IOU” on the injured worker’s settlement.

The main questions that had to be addressed were:

  • – How much did the government pay for medical bills?
  • – How much were we supposed to pay back?
Our happy client holding his SECOND SETTLEMENT CHECK after paying back Medicaid for covering his medical bills in a disputed Virginia Workers Compensation claim.  

The Abrams Landau workers compensation team took proactive measures to keep our client safe. The settlement funds were held in a secure Escrow account, as we waited for DMAS to respond with the itemized subrogation related to our client. This was so that when the Attorney General told us the amount for reimbursement, we were prepared to act swiftly and pay the amount in full.

After disbursing the agreed-upon amount to the government, our client now got a SECOND SETTLEMENT check for an additional $20,000! He received his initial NET check for the settlement PRIOR to the Medicaid payment, and then other after the Medicaid reimbursement.

It is important to be educated on the complexities of legal settlements. Failure to repay Medicaid and the Federal government can have major consequences and jeopardize future benefits.

Does Medicaid have a lien against Worker’s Compensation case? If Medicaid is paying for medical treatment related to your work accident, then Medicaid may assert a lien against any money you receive from the insurance company in a Worker’s Compensation settlement. In Virginia, if Medicaid covers expenses because of an accident at work, Medicaid may seek reimbursement for the costs it covered from the Workers Compensation Settlement. However, whether Medicaid asserts a lien against the settlement proceeds can depend on the specific circumstances of the case.

If you or someone you know has had a similar experience in having trouble navigating Medicaid, please contact us at or call 703-796-9555 right away.