Medicare Set Aside

With workers compensation and personal injury cases, one area of concern is how the victim’s future medical expenses will be paid. For those claimants that are, or shortly will be, receiving Medicare benefits, it is an important advantage to keep in mind that a portion of the settlement funds must be specifically put aside for subsequent medical costs.

This is where a Medicare Set-Aside Account comes in. Over the years, our settlement consultants have assisted attorneys and their clients with setting up the funding for Medicare Set Asides in Los Angeles County and San Diego County.

According to Federal law, Medicare is considered to be a secondary payer for medical expenses. What this means for claimants receiving settlements is that Medicare will not cover medical expenses resulting from the injury, including doctor’s appointments, laboratory tests, surgeries and medicine, before funds are used from the settlements themselves.

The Importance of a Medicare Set Aside Account

A Medicare Set Aside (MSA) is one beneficial and effective way of adhering to Medicare’s policies. The core function of an interest-bearing MSA account is to hold money to be used for a plaintiff’s future medical and prescription drug costs that are within the scope of what Medicare would otherwise cover. As of now, there are both Workers Compensation Medicare Set Asides (WCMSA) and Liability Medicare Set Asides (LMSA).

The Centers for Medicare and Medicaid Services (CMS) is responsible for determining the amount of money from the settlement that must be set aside for forthcoming medical expenses. Once the settlement recipient has used up all of the funds within that account, Medicare will begin paying subsequent costs. When using a Medicare Set Aside, it is important for the individual to carefully document his or her medical expenses and ensure that the funds are only used for approved purposes.

Choose Quest Settlements as Your MSA Consultants

Here at Quest Settlements, we work closely with attorneys and their clients on Medicare Set Asides. An MSA is a great way for injury victims to plan well for eventual medical expenses while at the same time preserving settlement funds and abiding by Medicare’s policies. While it is possible to fill an MSA account using one lump-sum payment, the account can also be funded by a structured settlement annuity. These annuities have become quite popular for funding MSA accounts as they help decrease the overall cost to the parties involved.

To consult with Quest Settlements regarding an MSA, please give us a call toll-free at (877) 832-3005. You can also call (805) 823-6100 to reach our Los Angeles branch directly, or (619) 391-2578 to contact our San Diego branch.