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Eaton v. Arizona Health Care Cost Containment System

11/26/2003

ve the degree of formality necessary to estop the state. Accordingly, the director properly found that the state was not estopped from refusing to compromise the federal portion of the lien.


We hold that, when a personal injury settlement or award provides sufficient funds to the recipient to reimburse a Medicaid lien in full, absent an HCFA compromise, 42 U.S.C. ยง 1396k(b) requires that the federal portion of that lien amount be fully reimbursed before the recipient can receive any funds from the settlement or award. Further, because Eaton neither filed a proper fraud claim nor satisfied the Valencia test for estoppel, he has failed to show that the director of AHCCCS abused his discretion or otherwise erred by refusing to compromise the federal portion of the lien. Accordingly, the superior court's decision is affirmed.


JOSEPH W. HOWARD, Judge


CONCURRING:


J. WILLIAM BRAMMER, JR., Presiding Judge


M. JAN FLUREZ, Judge






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