Loune-Djenia Askew, Esq
Sep 5, 2025
In Florida, Medicaid may have a legal right to be repaid from those settlement proceeds through the probate process.
When someone receives a personal injury settlement and later passes away, the funds they recovered don’t just disappear into their estate. In Florida, Medicaid may have a legal right to be repaid from those settlement proceeds through the probate process. Understanding how this works can help families avoid surprises when handling a loved one’s estate.
Medicaid’s Right to Reimbursement
If an injured person’s medical care was paid by Medicaid, the agency is entitled to reimbursement when that person receives a settlement or judgment. This is because Medicaid acts as a “payer of last resort” – it covers costs that should have been paid by the party responsible for the injury.
What Happens After Death?
When the person later passes away, their estate often goes through probate. At this stage, Medicaid may file a claim against the estate for repayment of medical expenses related to the injury. This means that before heirs or beneficiaries can receive distributions, the probate court ensures Medicaid is reimbursed if funds are available.
How Settlements Affect Probate
If the personal injury settlement was already received before death, any remaining portion of those funds that entered the estate can be subject to Medicaid’s recovery claim. If the settlement is still pending when the injured person passes away, the estate may complete the settlement, and Medicaid will assert its right to reimbursement once proceeds are available.
Why This Matters for Families
Families are often surprised to learn that Medicaid can step in and claim repayment during probate. This can significantly affect what beneficiaries ultimately inherit. Failing to address Medicaid’s rights early in the process can lead to delays and complications in closing the estate.
Protecting Your Interests
Because the rules can be complex, it’s important to work with an attorney who understands both personal injury settlements and Florida probate law. An attorney can:
Review Medicaid’s claim to ensure it’s accurate and limited to covered medical expenses.
Negotiate with Medicaid if appropriate.
Guide the family in properly addressing reimbursement so the probate case can move forward smoothly.
Final Thoughts
Medicaid reimbursement is an important consideration when personal injury settlements and probate estates intersect. By understanding Medicaid’s rights and planning ahead, families can better protect their interests and handle probate efficiently.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.