The Supreme Court of the United States (aka “SCOTUS” aka “The Supremes“) recently handed down a decision that will bring profound changes in the way North Carolina disburses settlement proceeds in catastrophic injury claims.
Before this month’s decision, whenever a person on Medicaid was injured by someone else’s carelessness, but there was not enough funds recovered from the careless party to pay for all of the injured person’s expenses and damages, attorneys were required to pay back to Medicaid basically one third of all those funds.
No more. In the case of Wos v. E.M.A., the High Court decided that “North Carolina’s scheme is “arbitrary” and often leads to results where a person already badly harmed gets injured even further by the civil justice system. The Court summarized the essential problem with North Carolina’s practice this way: