Liens For Attorney Fees:  Medi-Cal Lien Had To Be Reduced By 25% Based on Specialized Welfare and Institutions Code Section Allowing For Attorney Fee Services Reduction

Section 14124.72(d) Is the Particular Statutory Section.

            The California Department of Health Care Services can bring a claim to determine the amount of a Medi-Cal lien after a settlement of a plaintiff’s medical malpractice action, generally a lien where Medi-Cal made payments to repair the damage caused by the negligent doctor.  In Martinez v. Dept. of Health Care Services, Case No. B278117 (2d Dist., Div. 6 Dec. 13, 2017) (unpublished), the appellate court agreed with the trial judge’s valuation of the Medi-Cal lien, but did reduce it a further 25% on a stipulated basis in one request.  Welfare and Institutions Code section 14124.72(d) allows for a 25% reduction as follows:  “Where the action or claim is brought by the beneficiary alone and the beneficiary incurs a personal liability to pay attorney’s fees and costs of litigation, the director’s claim for reimbursement of the benefits provided to the beneficiary shall be limited to the reasonable value of the benefits provided to the beneficiary under the Medi-Cal program less 25% which represents the director’s reasonable share of attorney’s fees paid by the beneficiary and that portion of the cost of litigation expenses determined by multiplying by the ratio of the full amount of the reasonable value of benefits so provided to the full amount of the judgment, award, or settlement.” 

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