Southwest/Flynn v. AHCCCS

Medicaid/AHCCCS Recovery Rights Limited to the Proportionate Amount Paid, Less Litigation Expenses


We had an exciting victory recently which will provide significant support to plaintiffs with AHCCCS liens in policy limits cases.

The Court of Appeals affirmed, in a published opinion, the trial courts' decisions in Southwest Fiduciary/Flynn v. AHCCCS, a consolidated set of cases holding AHCCCS "may recover no more than the portion of the victim's settlement that represents recovery of the plan's payments on behalf of the victim, less a deduction for litigation expenses." That is, in applying the Supreme Court's Ahlborn decision, AHCCCS must use the "bills paid," not the "total bills."

Although we're gratified that the Court awarded us our attorneys' fees, my office had expected to handle this matter pro bono. It was a hard fought case, requiring work from the Office of Administrative Hearings, to the Superior Court to the Court of Appeals. We also expect AHCCCS to file a Petition for Review with the Supreme Court, although we do not believe their efforts will be successful.

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Reference Info:Decision | State, 9th Circuit, Arizona | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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