New York State Department of Health’s policies on Medicaid Liens and Recoveries

April 17, 2002 New York's Medicaid lien policy does permit it to garnish injury settlements awarded to people treated at a state psychiatric facility as payment for services or other assets. Since 1986, New York State has had a policy that any state hospital resident who receives a windfall also receives a bill for care provided at the state-run facility. The state is able to seek reimbursement for an episode of inpatient psychiatric care from residents and former residents who receive any type of windfall, such as a legal judgment, up to six years after the person received . . .