Medicare Set-Asides

Ohio, Michigan, & Nationwide

To reach a favorable settlement, many claimants negotiate paying future medical bills. As part of an injury, a claimant can set up a Medicare set-aside (MSA), which is a promise to Medicare that you will only use your settlement to pay for your future healthcare bills that Medicare would traditionally cover after an injury. The team at CW Settlements can explain Ohio and Michigan Medicare set-asides in further detail and make sure you avoid making any procedural mistakes.

Additional Details on the Medicare Set-Asides Program

An MSA is Medicare’s way of making sure clients don’t double-dip funding, as plaintiffs will only use the settlement to pay for medical bills related to their claim. When it is set up correctly, it can protect clients from huge problems later. However, if your MSA is done incorrectly, Medicare can harass you for decades.

Experienced professionals, like those at CW Settlements, can help you set up an MSA properly. Medicare doesn’t want claimants to expect reimbursement if they don’t set aside enough of their settlement for their future medical costs, which Medicare would normally pay for if you did not have a settlement. If your clients encounter issues, it can create future problems. Essentially, Medicare doesn’t want to pay for medical costs that someone else already paid to cover.

If claimants fail to protect Medicare’s interests, Medicare can:

• Refuse to pay future related medical bills.
• Make someone pay them back, plus interest and/or penalties.
• File a legal claim or put a lien on their house.

When Does Someone Likely Need an MSA?

American companies compensated plaintiffs $40 billion in 2024. Someone is very likely to need an MSA if both of the following are true:

• They are already on Medicare.
• They will be on Medicare within 30 months of their settlement.

Contact a trusted advisor at CW Settlements to further discuss your client’s likelihood of needing an MSA and how to protect their financial future.

Where Does the Money Actually Sit?

With a smaller self-administered MSA, a separate bank account is created. Then, receipts are kept, and bills are paid. Later, Medicare receives an annual accounting. However, with professional administration for a larger account, a third-party company traditionally handles the payments, files necessary reports, etc., and it may charge a nominal fee. If used correctly, money can be invested conservatively and typically earns interest tax-free.

When you set up an MSA, it’s helpful to determine where money will be stored if you have significant client concerns. Lawyers can always discuss MSAs with our team at CW Settlements to ensure compliance with complex government regulations. We help lawyers protect their clients from losing Medicare benefits, and we provide services, like professional administration, which saves time and money.

Our seasoned consultants can calculate the correct MSA amount, secure funding through cost-effective structured settlements, and manage the account to avoid future legal and financial risks for both you and your client.

Learn More About Medicare Set-Asides From CW Settlements Today

If you’re an attorney who’d like to learn more about Medicare set-asides, contact the experienced and knowledgeable professionals at CW Settlements. We can answer your questions and provide extensive information to assist your current settlement practice.