Ark. Code Ann. § 20-77-307 (2026)
Assignment to Department of Human Services of rights of recovery
- As a condition of eligibility, every Medicaid applicant shall automatically assign his or her right to any settlement, judgment, or award which may be obtained against any third party to the Department of Human Services to the full extent of any amount which may be paid by Medicaid for the benefit of the applicant.
- The application for Medicaid benefits shall, in itself, constitute an assignment by operation of law.
- The assignment shall be considered a statutory lien on any settlement, judgment, or award received by the recipient from a third party.
- Every Medicaid applicant, as a condition of eligibility, shall cooperate in establishing paternity, except for good cause shown, for a child born out of wedlock for whom the recipient can legally assign rights, in obtaining medical care, support, and payments for himself or herself or any other person for whom the individual can legally assign rights, and in identifying and providing information to assist the department and the Office of Child Support Enforcement in pursuing any liable third party.
History. Acts 1981, No. 500, § 5; A.S.A. 1947, § 83-171.6; Acts 1987, No. 463, § 5; 1993, No. 1242, § 7.
Publisher's Notes. Acts 1993, No. 957, § 4 transferred the Child Support Enforcement Unit from the Division of Economic and Medical Services of the Department of Human Services to the Department of Finance and Administration — Revenue Division and renamed it the Office of Child Support Enforcement.
Research References
Ark. L. Rev.
An Accident Waiting to Happen: Arkansas Department of Health and Human Services v. Ahlborn Exposes Inequities in Medical Benefits Legislation, 60 Ark. L. Rev. 533.
U. Ark. Little Rock L.J.
Survey—Miscellaneous, 10 U. Ark. Little Rock L.J. 593.
Case Notes
In General.
Although recipients of Medicaid benefits are required to assign rights to third-party liability to the Arkansas Department of Health and Human Services (ADHHS), such assignment, and the lien of the ADHHS, only extends to third-party liability for medical expenses; any third-party liability for other damages is not assigned or lienable to reimburse the ADHHS for the full amount of benefits paid. Ark. Dep’t of Health & Human Servs. v. Ahlborn, 547 U.S. 268, 126 S. Ct. 1752, 164 L. Ed. 2d 459 (2006).
Although the Arkansas collateral source rule applied to bar the United States from presenting evidence showing that the amount paid for medical services was less than the billed amounts because the decedent at issue was covered by Medicaid, the application of the rule would not bar recovery of the Medicaid payments, should plaintiffs prevail in their 28 U.S.C. § 2674 of the Federal Tort Claims Act suit. An action could later be brought under this section to recover the Medicaid payments by executing a lien on plaintiffs' recovery. McMullin v. United States, 515 F. Supp. 2d 904 (E.D. Ark. 2007).
Third Party Recovery.
State laws regarding assignment and recovery of Medicaid payments were preempted to the extent they required the recipient to assign her rights to recover third-party liability payments for matters other than the cost of her medical care and services. Ahlborn v. Ark. Dep't of Human Servs., 397 F.3d 620 (8th Cir. 2005), aff'd, Ark. Dep't of Health & Human Servs. v. Ahlborn, 547 U.S. 268, 126 S. Ct. 1752, 164 L. Ed. 2d 459 (2006).
Where a recipient of Medicaid benefits settled with alleged tortfeasors for medical expenses and other damages related to future care, permanent injury, pain and suffering, and lost earnings, the recipient's assignment of third-party liability to the Arkansas Department of Health and Human Services (ADHHS), and the lien of the ADHHS, extended only to the portion of the settlement attributable to the recipient's medical expenses and did not extend to the portion of the settlement attributable to other damages. Ark. Dep’t of Health & Human Servs. v. Ahlborn, 547 U.S. 268, 126 S. Ct. 1752, 164 L. Ed. 2d 459 (2006).
Cited: National Bank of Commerce v. Quirk, 323 Ark. 769, 918 S.W.2d 138 (1996).