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Can an attorney withhold funds from your settlement for a medicaid collection lien?

1 Answers. Asked on Jan 23rd, 2014 on Civil Litigation - Florida
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I've sent a letter stating I do not authorize them to pay any third party bills on my behalf but he insist on withholding my funds I've read on medicaid liens and it states that if no amount was set to pay medical bills in the settlement that the personal injury money don't have to be used to pay the medicaid lien
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Answered on Jan 23rd, 2014 at 2:16 PM

I don't know what you've read, but if any part of your settlement represented reimbursement for expenses which Medicaid had paid on your behalf (which Medicaid will of course claim, even if your settlement agreement reads otherwise), Medicaid has a lien on those monies.  Even if you dispute the lien, I believe that your attorney is legally required not to disburse the funds to you until the dispute is resolved. 

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