In late November 2004, the Medicaid statute was amended by house bill 5414. The bill imposes a requirement on employees who are receiving or who have received Medicaid assistance to provide notice to the Department of Social Services when filing a workers’ disability compensation claim. The notice requirement applies to the employee and to his or her legal counsel. The statute provides that the Department of Social Services or the Medicaid contracted health plan may file a legal action against the employee or his or her legal counsel, or both, to recover medical expenses paid by Medicaid. The amendment also provides that the Attorney General shall recover any cost or attorney fees associated with a recovery from the employee, legal counsel, or both. Interestingly, the amendment provides that the Department of Social Services has “first priority against the proceeds of the net recovery”. That “first priority” seems to conflict with Friend of the Court and Medicare priorities. The amendment provides that, if the employee recovers less against the proceeds of the net recovery than the medical expenses paid by Medicaid, the Department of Social Services (or Medicaid contracted health plan) and the employee shall share equally in the proceeds of the net recovery.