Medicare Set Asides...
Factual Concern or Urban Myth
by Rick Bishop
Principal, Settlement Professionals
Medicare Set Aside requirements have become a consistent source of speculation and anxiety among plaintiff attorneys across the country.
Although CMS currently has given limited guidance on MSAs for general liability settlements, the original act, the Medicare Secondary Payer of 1980 (MSP), requires Medicare’s interests be considered when settling a general liability case. Furthermore, under Section 111, there is now a reporting requirement of that settlement by the liable party (defendant/insurer).
The most important thing to keep in mind is that although Section 111 does not require liability MSAs, protecting Medicare’s interest under the MSP statute still applies. There are several options available to consider, one of which is a liability MSA. The entire issue of general liability MSAs is a gray area and the best solution is to create thorough documentation to support whichever position one might take.
If you have any question about Medicare Set Aside requirements for structured settlements, contact us. We're here to help.