Health Insurance: Medicaid Withheld Too Much Money in My Settlement

My question involves insurance law for the state of: New York

I had a settlement and Medicaid withheld $3600

I contacted all the doctors and payments that were made due to my injury and they were about $1200.

I requested from medicaid their payment history and most of the money medicaid paid was $500 a month to my medicaid provider, which is health first. Under medicaid you have to choose a health insurance provider and medicaid pays them monthly. So every month medcaid paid Health first $500.

Does anyone have any idea if medcaid can allocate this $500 monthly payment for my injuries? Because all the payments made from Health First was $1200.

Thanks for any input into this.

Health Insurance: Medicaid Withheld Too Much Money in My Settlement