House approves $5.5 million Houghton Medicaid settlement to reimburse legal fees

The Utah House on March 9 approved SJR 19, endorsing a $5.5 million settlement of the Houghton Medicaid class‑action lawsuit that will reimburse about 1,200 Medicaid recipients for underpaid legal fees.

Representative Doukoura, the House sponsor, said the settlement resolves litigation that has stretched for 16 years and has already been approved by the courts, the governor’s office and the Senate. “The settlement terms are $5,500,000,” Doukoura said, adding that “in the state, there’s over 1,200 recipients and they’ll receive a full reimbursement for their legal fees.” He said payments would be made in July and August and that much of the money will come from federal funds with the remainder from the rainy‑day fund.

The resolution passed unanimously, 69–0, and will be signed by the Speaker before being returned to the Senate for the President’s signature.

Why it matters: Representative Doukoura and backers characterized SJR 19 as a long‑overdue corrective payment for claimants and emphasized that federal funding will cover most of the settlement, limiting additional state budget impact. Representative Doukoura also said the average payment to claimants will be about $2,000.

What happens next: With House approval, the resolution returns to the Senate for the President’s signature and implementing steps are expected to follow the court and executive‑branch approvals already in place. The sponsor indicated the payments will be distributed later this summer.