When settling a case that involves a physical injury, whether workers compensation or liability, the burden for future medical expenses cannot be shifted to Medicare, according to the Medicare Secondary Payer Act.   When needed, a Medicare Set-Aside Arrangement (MSA) will be prepared and included as part of the settlement. The purpose of the MSA is to estimate future medical expenses related to the injury that would typically be covered by Medicare. After settlement, the funds are placed in a Medicare Set Aside account. By establishing this account, the settlement parties are protecting Medicare’s interest and complying with the Medicare Secondary Payer Act.

The MSA is funded in two parts – the seed money, which is paid as a lump sum at the time of settlement, and ongoing annual payments. The ongoing annual payments are typically provided via a structured settlement annuity.  Melissa and her team are well-versed in Medicare issues can help navigate when an MSA is required and incorporate MSA benefits into a settlement.