I am settling two insurance claims. The companies say I must do a Medicare set-aside and not be able to keep my money. What is it? Is it a tax for Medicare on settlement? Do I legally have to do it?
Answer by luvmy3gals
All parties in a Workers' Compensation (WC) case have significant responsibilities under the Medicare Secondary Payer (MSP) laws to protect Medicare's interests when resolving WC cases that include future medical expenses. The recommended method to protect Medicare's interests is a Workers' Compensation Medicare Set-aside Arrangement (WCMSA), which allocates a portion of the WC settlement for future medical expenses. The amount of the set aside is determined on a case-by-case basis and should be reviewed by CMS, when appropriate. Once the CMS approved set aside amount is exhausted and accurately accounted for to CMS, Medicare will agree to pay primary for future Medicare covered expenses related to the WC injury
Answer by mamatohaley
Medicare has a superlien on all settlements. That means they have strict rights for reimbursement on what they paid out. The only way around this would be if your claim was a policy limits issue and by paying back medicare you would not be made whole yourself. It does not sound like this is an issue for your case. They are going to get paid.
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Orignal From: I am settling my workers compensation/liability claims. What is a Medicare Set-aside?
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