Should I report injury settlement to Medicaid?

Q: Should I refrain from filling out my Medicaid recertification form? First let me say that Medicaid does not have any liens on my settlement in any way. I am due to have the recertification form filled out and returned in less than two weeks. However I recently received a personal injury settlement for less than $20,000 but more than $10,000 which I am not sure by may put me over the PA asset or resource threshold. One legal advisor informed me that I could let it lapse and try to find a Medicare Advantage program to replace Medicaid. I never have liked to inform anyone of what’s in my bank account; but then, who does? So should I not fill out the form which means automatic cancellation or fill it out and let them deny my Medicaid because of my suddenly inflated financial resources from the P.I. settlement?

A: There is not enough information to give you a reliable and through answer. Why would anybody want to risk losing Medicaid funding is my first question. If you handle this improperly you could risk violating the law and lose Medicaid benefits.  I would consult with a lawyer versed in Medicaid rules and regulations before doing anything.

If you feel like this issue relates to you, or a problem that you are experiencing, please contact me so that we can discuss your situation.