Third Party Liabilities

Third Party Liabilities


While Medicaid pays for medical care for eligible individuals, it pays only after all other resources available to these individuals have been exhausted. Other resources, or third parties, may include Medicare, employment-related health insurance, and private health insurance, among others. Third Party Liability work allows the state to save Medicaid money by finding these other resources and documenting them to ensure that Medicaid money is used only after third party payers have fulfilled their obligations to the individual.

Each liability coverage the Third Party Liability team adds averages nearly $200 in cost avoidance per member, per month. This savings can be used to support other individuals on Medicaid, and helps to ensure that beneficiaries get the health coverage they need.

Other populations impacted.

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