The State of Virginia paid $20.7 million to the U.S. government to resolve allegations that a birth injury compensation program was wrong in asking participants to submit Medicaid claims for the lifetime care of severely disabled children.
The Virginia Birth-Related Neurological Injury Compensation Program was established more than 30 years ago to safeguard doctors from medical malpractice lawsuits and stabilize health insurance premiums. The program paid out the money in October to end an investigation led by the U.S. Department of Justice.
The Roanoke County couple sued the state program in 2015, in an attempt to receive and pay for their son's care, who was severely disabled at birth in 2013. The settlement recovers the money federal government spent on the family as well as other affected participants in the birth injury program during the 11-year period. The program has admitted 255 people since its creation, among them 59 have died. A law firm that represented the couple was also given an undisclosed amount as legal fees by the program.
More than $4.1 million of the settlement funds were paid to the family, who alleged that the state program was incorrect in asking them and other families to apply for Medicaid as a primary source of fund for the care, even as the federal law says, the program to act as the payer of last resort.
A similar incident took place at Allina Health Cambridge Medical Center, where a certified midwife mishandled the delivery of a pregnant lady that resulted in a broken right arm and severe nerve damage to the baby after his birth. The baby's shoulders got stuck at the time of delivery that prompted the midwife to apply extreme force to pull him out, which eventually resulted in a broken arm and torn nerves that control the arm motions.
