Once you notify the DHCS, you can begin to create a Medi-Cal lien. A lien gives the government the right to collect – a kind of I.O.U. to be paid later. Medi-Cal's right to collect allows the organization to request a refund from personal injury settlements for treatment funds.

The rule states that Medicaid is entitled to one-half of the settlement after legal expenses, or the actual amount the state paid covering medical bills—whichever is less. If you are not satisfied with the amount or believe there is an error, you have the right to appeal.

Straightforward cases can often be resolved in a few months, while more complex situations necessitate a detailed investigation, expert evaluations, and legal strategizing that can prolong the process.

California Civil Code 3040 CC puts a cap on what health insurance companies can recover from a personal injury settlement. Specifically, the insurer's recovery is limited by the lesser of: The cost of the medical services; or. A percentage of the total settlement.