Today, I want to talk about Florida’s Medicaid lien reduction formula. This formula sometimes allows for a reduction of Florida Medicaid liens. It does not, however, allow for a reduction of Medicaid liens in every instance of a personal injury settlement. So you’re only going to get a reduction in a very specific circumstance. Here we go.
The first step to determining whether you’re going to get a reduction of your Florida Medicaid lien is to add Attorney’s Fees (capped at 25%), and Taxable Costs to determine the Total Procurement Cost. One thing to keep in mind in step number one is that you may be required to pay your attorney more than a 25% Attorney Fee, but for purposes of this formula, the Attorney’s Fees are capped at 25%. Also, Taxable Cost is a term of art lawyers use, and it’s not all costs in a case. They are only costs that are allowed to be classified as taxable under the rules of civil procedure and the guides for the determination of Taxable Cost.
The second step is to subtract the Total Procurement Cost from the Gross Settlement Amount, and that leaves you with the Tort Recovery.
The final and third step is to take the Lien Amount, and know that that Lien Amount will not exceed one half of the Tort Recovery.
The Florida Medicaid lien reduction formula was designed by the Florida legislature to allow for the states to usually get their money back, so it only allows for lien reductions in very specific circumstances.
If you have questions that we didn’t address in this video, feel free to give me a buzz at 1-800-ASK-DAVE. We’re here to help!