(a) A judgment, an award, or a settlement in any action or claim by a medical assistance recipient to recover damages for injuries, disease, disability, or death in which the Department of Human Services has an interest, shall not be satisfied without first giving the department notice and a reasonable opportunity to establish its interest.
(b) If a recipient, his or her guardian, attorney, or personal representative disposes of the funds that are to be held for the benefit of the department under this section without the written approval of the department, that person shall be liable to the department for any amount that, as a result of the disposition of the funds, is not recoverable by the department.
(c) In addition to the amount of the department's claim, a recipient, his or her guardian, attorney, or personal representative who knowingly fails to obtain written approval from the department before disposing of funds under this section is liable to the department for:
(1) A penalty equal to ten percent (10%) of the amount of the department's claim; and
(2) Reasonable costs and attorney's fees.
Structure Arkansas Code
Title 20 - Public Health and Welfare
Chapter 77 - Medical Assistance
Subchapter 3 - Third-Party Liability
§ 20-77-301. Action by Department of Human Services
§ 20-77-302. Action by recipient alone — Reimbursement of division
§ 20-77-303. Action by division and recipient
§ 20-77-304. Notice of action or claim — Intervention or consolidation
§ 20-77-305. Notice to Department of Human Services of award or settlement by recipient required
§ 20-77-306. Liability of third parties to Department of Human Services — Definitions
§ 20-77-307. Assignment to Department of Human Services of rights of recovery
§ 20-77-308. Release of information to Department of Human Services
§ 20-77-309. Denial or reduction of benefits — Insurance policies
§ 20-77-310. Denial or reduction of benefits — Service plan corporation contracts
§ 20-77-311. Denial or reduction of benefits — Healthcare providers