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STATE OF CONNECTICUT v. JAMES PETERS ET AL. (SC 17855)
Rogers, C. J., and Norcott, Katz, Vertefeuille and Schaller, Js. Argued November 19, 2007--officially released May 27, 2008

Roger Lee Crossland, for the appellants (defendants). Gary G. Williams, assistant attorney general, with whom, on the brief, were Richard Blumenthal, attorney general, and Robert A. Nagy, assistant attorney general, for the appellee (plaintiff).

Opinion

ROGERS, C. J. This appeal arises from a challenge to the amount of a lien for medicaid benefits that was asserted by the plaintiff, the state of Connecticut, against an arbitration award received by an accident victim from a third party tortfeasor. Specifically, we are asked to consider whether the state can choose to collect reimbursement from the medicaid recipient under federal medicaid law instead of pursuing the third party tortfeasor directly, and, if so, whether the amount of reimbursement must be reduced pro rata to compensate the recipient for the attorney's fees and costs he expended in obtaining the recovery in which the state ultimately shares. The defendants1 appeal from the trial court's granting of the state's motion for summary judgment on its interpleader action.2 We affirm the judgment of the trial court. The following undisputed facts and procedural history are relevant to this appeal. The named defendant, James Peters, was seriously injured in a motorcycle accident in 1997. Having incurred $280,000 in medical bills, Peters received $62,890.72 in medicaid assistance and $7700 in cash assistance from the state department of social services.3 Thereafter, Peters pursued damages from the tortfeasor and ultimately obtained an arbitration award in the amount of $747,500, which was reduced to $526,298.33 after attorney's fees and costs were deducted. The state department of administrative services, which is responsible for the billing and collection of any money due to the state in public assistance cases; see Peters v. Dept. of Social Services, 273 Conn. 434, 439 n.5, 870 A.2d 448 (2005); then asserted a lien in the amount of $70,590.72 against the arbitration award pursuant to General Statutes

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Connecticut Law