SETTLEMENT PLANNING CHECKLIST #5

Get the Facts on Medicare
Set Asides

by Rick Bishop
Principal, Settlement Planners

Medicare Set Aside requirements continue to be a source of speculation and anxiety among plaintiff attorneys across the country. We're here to help you get the facts.

Although CMS currently has given limited guidance on MSAs for general liability settlements, the original act, the Medicare Secondary Payer of 1980 (MSP), requires all parties to "make a reasonable effort to protect the government's interests." 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.

If you have any questions about Medicare Set Aside requirements, contact us. We're here to help.

Call today. (800) 727-3885.