Structured Settlements involving recipients of Medicare and Medicaid should take into account a few very important details.
Firstly, it must be noted that the interests of social insurance programs must be protected with respect to benefits already paid out at the time of settlement. This means that the Structured Settlement must already include these payments made by Medicare and ensure that Medicare is not responsible for payments not included under their coverage. Secondly, funds from the settlement must be used to cover medical expenses of the claimant until they are exhausted; only then will Medicare coverage be available.
Rate of Return
Important To Know
The Center for Medicare and Medicaid Services (CMS) administers settlements involving Medicare and Medicaid and they will not recognize settlements that do not protect Medicare’s interests. Any amount allocated in the structure for future medical expenses should be placed in a Medicare Set-Aside (MSA). This account is established as a means to pay for projected future medical expenses that would have otherwise been covered by Medicare.
To learn more about the effects Medicare could have on your Structured Settlement please contact one of our consultants at Vega Settlement Group.
Securities America Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of Securities America.
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