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ARKANSAS DEPT. OF HEALTH AND HUMAN SERVS. v. AHLBORN

No. 04-1506.

547 U.S. 268 (2006)

ARKANSAS DEPARTMENT OF HEALTH AND HUMAN SERVICES et al. v. AHLBORN

Supreme Court of United States.

Decided May 1, 2006.

Attorney(s) appearing for the Case

Lori Freno, Assistant Attorney General of Arkansas, argued the cause for petitioners. With her on the briefs was Mike Beebe, Attorney General.

Patricia A. Millett argued the cause for the United States as amicus curiae urging reversal. With her on the brief were Solicitor General Clement, Assistant Attorney General Keisler, Deputy Solicitor General Kneedler, William Kanter, and Anne Murphy.

H. David Blair argued the cause for respondent. With him on the brief was Phillip Farris.*

JUSTICE STEVENS delivered the opinion of the Court.

When a Medicaid recipient in Arkansas obtains a tort settlement following payment of medical costs on her behalf by Medicaid, Arkansas law automatically imposes a lien on the settlement in an amount equal to Medicaid's costs. When that amount exceeds the portion of the settlement that represents medical costs, satisfaction of the State's lien requires payment out of proceeds...

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