If you have a personal injury settlement and are a Medicare beneficiary, you may need to establish a Medicare Trust Set Aside (MSA). This legal arrangement ensures that money is reserved from your settlement to cover future medical expenses related to your injury. It is crucial to protect both your Medicare benefits and your settlement. Here is an explanation of how Medicare trust set asides work and why legal guidance is essential.
What is a Medicare Trust Set Aside?
A Medicare trust set aside is a financial arrangement that sets aside a portion of your personal injury settlement to cover future medical care costs related to your injury. This is necessary because Medicare will not pay for these expenses until the funds in the set-aside account have been exhausted.
When a settlement is reached, Medicare requires that a reasonable portion of it be allocated for future medical costs that Medicare would otherwise cover. This ensures that the burden of your medical expenses does not fall solely on Medicare.
When is a Medicare Trust Set Aside Necessary?
Not every personal injury settlement requires an MSA. However, if you meet certain criteria, setting one up may be mandatory. An MSA is typically required if:
- You are currently a Medicare beneficiary and receive a settlement for a personal injury.
- You expect to become a Medicare beneficiary within 30 months of the settlement and the settlement amount exceeds a specific threshold.
- Your injury will require future medical care that Medicare would otherwise cover.
Failing to establish an MSA when required could result in Medicare refusing to pay for future treatments, which could leave you covering these expenses out of pocket.
How Does a Medicare Trust Set Aside Work?
Once the settlement is reached, a portion of the money is placed in the MSA account. These funds are used solely to pay for future medical care related to your injury. The amount to be set aside is based on a calculation of your future medical needs, often determined by medical and legal professionals.
Medicare will only step in to cover your medical expenses after the funds in the MSA have been fully depleted. It is important to track all expenses accurately and ensure that the funds are spent properly, or you risk losing Medicare coverage for those medical costs.
Why You Need an Attorney for a Medicare Trust Set Aside
Setting up an MSA requires careful planning, and mistakes can lead to serious consequences. An attorney experienced in Medicare trust set asides can help you navigate the process and ensure that everything is handled correctly. Here’s why legal guidance is crucial:
1. Compliance with Medicare Rules
Attorneys ensure that your MSA complies with all Medicare regulations. This includes calculating the appropriate amount to be set aside and managing the paperwork required by Medicare.
2. Protecting Your Settlement
An attorney will work to ensure that only the necessary amount of your settlement is allocated to the MSA, leaving the rest for your other expenses, such as lost wages, pain and suffering, or future care not covered by Medicare.
3. Managing the MSA
An attorney can assist in creating a plan to manage the MSA, including how to track medical expenses and ensure that funds are spent correctly. This ensures that Medicare will cover your expenses when the set-aside is exhausted.
Why Hire Fielding Law?
At Fielding Law, we understand the complexities of Medicare trust set asides and can guide you through the entire process. Our caring and capable attorneys will work to protect your settlement while ensuring compliance with Medicare’s requirements. Let Fielding Law help you secure your future medical care and preserve your financial recovery. Call us at 833.88.SHARK today for a free consultation.
Note: Information provided is for educational purposes and does not constitute legal advice. Always consult with a qualified attorney for legal concerns.
