What are the subrogation rights of Welfare and Medicaid?
Cash Assistance/Public Assistance (Welfare). A person who receives cash assistance from the date of the accident causing an injury to the time of the settlement or verdict has an obligation to reimburse DPW for such assistance. An attorney is not obligated to notify DPW or protect DPW’s interest in a settlement, however, under the “lump sum income rule” a welfare recipient who receives a sum of money may be disqualified from receiving additional money for a period of time. The disqualification will apply to the entire family. The period of time will depend on the amount of the settlement. Medical Assistance (Medicaid). Under Pennsylvania Law, DPW has the right to claim reimbursement for Medicaid payments made on account of medical benefits paid out following an injury caused by a third party. An attorney has an obligation to assure that Medicaid is reimbursed for any benefits paid. The law does provide, however, that the reimbursement to Medicaid shall not exceed one-half of the recove
