Law & Courts

Florida Can Recover Money From Funds for Girl Who Was Hurt After Exiting School Bus

By Mark Walsh — June 06, 2022 2 min read
Photo shows a summer day in front of the U.S. Supreme Court building in Washington, DC.
  • Save to favorites
  • Print

In a case involving a Florida student hit by a truck after stepping off her school bus, leaving her in a vegetative state, the U.S. Supreme Court on Monday ruled that federal Medicaid law allows a state to seek reimbursement from a settlement the student’s parents reached with the school board and other defendants.

The justices ruled 7-2 against Gianinna Gallardo, who was 13 years old in 2008 when she exited her school bus and was struck by a pickup truck. She has been on life support ever since. Her parents sued the Lee County, Fla., school district as well as the truck’s owner and the driver.

The parties reached a settlement of $800,000 in 2015, even though her suit sought as much as $20 million in damages for past and future medical expenses and future earnings.

Florida’s Medicaid program, which was not a party to the settlement, paid some $862,000 for Gallardo’s medical care. The state placed a lien on the settlement, and under Florida law, it was entitled to recover 37.5 percent of the amount for medical expenses, or about $300,000 of the settlement amount.

Gallardo’s family challenged Florida’s actions in federal court, arguing that the state was entitled to reimbursement for only a relatively small amount—$35,000—from the settlement that covered the girl’s past medical expenses.

A federal district court ruled for the family. But the U.S. Court of Appeals for the 11th Circuit, in Atlanta, ruled for the state, holding that the federal Medicaid Act permits state programs to seek reimbursement of third-party payments for both past and future medical expenses. The Florida Supreme Court, in a separate case, had reached the opposite conclusion.

The U.S. Supreme Court, in its June 6 decision in Gallardo v. Marstiller, affirmed the 11th Circuit court and ruled for Florida.

In a dry opinion for the majority, Justice Clarence Thomas said that “Medicaid requires participating states to pay for certain needy individuals’ medical costs and then to make reasonable efforts to recoup those costs from liable third parties.”

Under a plain reading of federal Medicaid law, he said, “Florida may seek reimbursement from settlement amounts representing ‘payment for medical care,’ past or future.”

Chief Justice John G. Roberts Jr. and Justices Samuel A. Alito Jr., Elena Kagan, Neil M. Gorsuch, Brett M. Kavanaugh, and Amy Coney Barrett joined Thomas’s opinion.

Justice Sonia Sotomayor, in a dissent joined by Justice Stephen G. Breyer, said the majority read one Medicaid Act provision in isolation and gave “short shrift” to a larger context of the statute.

“The court’s holding is inconsistent with the structure of the Medicaid program and will cause needless unfairness and disruption,” Sotomayor said.

She noted that Gallardo “has continued to receive Medicaid benefits, despite the proceeds from her tort settlement, because those proceeds were transferred into a congressionally authorized Special Needs Trust, a narrow exception to Medicaid’s asset limits.”

The majority decision undercuts Congress’s choice to allow such special needs trusts, Sotomayor said, and lawmakers may need to act to prevent any “disruption” to that option.

Events

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts What Schools Need to Know About the Supreme Court’s Transgender Sports Ruling
The justices upheld two state laws that bar transgender girls from participating in female sports.
10 min read
A group prays outside of the Supreme Court ahead of the court's ruling on whether transgender girls and women can play on school athletic teams, on June 30, 2026, on Capitol Hill in Washington.
A group prays outside of the U.S. Supreme Court ahead of the court's ruling on whether transgender girls and women can play on school athletic teams, on June 30, 2026, in Washington. The court upheld two state laws barring transgender girls from joining girls' school sports teams.
Jose Luis Magana/AP
Law & Courts Judges Strike Down Trump Admin.'s Student Loan Forgiveness Overhaul
Two judges sided with advocates who said the program risked becoming a tool for political retribution.
3 min read
In this May 5, 2018, file photo, graduates at the University of Toledo commencement ceremony in Toledo, Ohio.
Graduates at the University of Toledo commencement ceremony in Toledo, Ohio, on May 5, 2018. Two judges have ruled against the Trump administration's overhaul of a public service loan forgiveness program for which teachers have qualified.
Carlos Osorio/AP
Law & Courts Supreme Court Upholds Birthright Citizenship, Rejecting Trump's Proposed Limits
The justices relied on the 14th Amendment and federal law to rule that anyone born in the U.S. is a citizen.
4 min read
Members of the Supreme Court sit for a group portrait in Washington, Oct. 7, 2022. Bottom row, from left, Justice Sonia Sotomayor, Justice Clarence Thomas, Chief Justice John Roberts, Justice Samuel Alito and Justice Elena Kagan. Top row, from left, Justice Amy Coney Barrett, Justice Neil Gorsuch, Justice Brett Kavanaugh, and Justice Ketanji Brown Jackson. The Supreme Court justices will take the bench Monday, July 1, 2024, to release their last few opinions of the term, including their most closely watched case: whether former President Donald Trump has immunity from criminal prosecution.
Members of the Supreme Court sit for a group portrait in Washington, Oct. 7, 2022. Bottom row, from left, Justice Sonia Sotomayor, Justice Clarence Thomas, Chief Justice John Roberts, Justice Samuel Alito, and Justice Elena Kagan. Top row, from left, Justice Amy Coney Barrett, Justice Neil Gorsuch, Justice Brett Kavanaugh, and Justice Ketanji Brown Jackson. The high court, on June 30, 2026, rejected President Donald Trump's executive order on birthright citizenship.
J. Scott Applewhite/AP
Law & Courts States Can Ban Transgender Athletes, Supreme Court Decides
The court ruled that state bans in Idaho and West Virginia don’t violate the Constitution or Title IX.
3 min read
People advocate for a ban on transgender women and girls participating in women's and girls' sports outside the U.S. Supreme Court building as the court announced decisions in Washington, on June 29, 2026.
People advocate for a ban on transgender women and girls participating in women's and girls' sports outside the U.S. Supreme Court building as the court announced decisions in Washington, on June 29, 2026. The Supreme Court ruled on June 30, 2026, that states may enforce laws restricting transgender athletes’ participation on girls’ and women’s sports teams.
Francis Chung/Politico via AP