Latham v. Office of Recovery Services
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The Supreme Court reversed the judgment of the district court ruling against Appellant in this declaratory judgment action and holding that the Office of Recovery Services (ORS) was entitled to recover from the portion of Appellant's settlement award representing all medical expenses, both past and future, holding that ORS may recover from only that portion of an award representing past medical expenses.
Appellant brought malpractice and negligence claims against a hospital, alleging that the hospital's failure to diagnose his stroke caused severe injuries. At the time of his injuries, Appellant received Medicaid through the State, and Medicaid paid for Appellant's treatment. At issue here was what portion of Appellant's settlement award the ORS was permitted to collect. The district court held that ORS was entitled to recover from the portion of Appellant's settlement award representing all medical expenses, both past and future. The Supreme Court disagreed and remanded the case, holding that ORS may place a lien on and recover from only that portion of Appellant's settlement representing past medical expenses.
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