Medicare Secondary Payer Statute
Medicare is now enforcing a 1981 federal statute that requires a portion of any settlement be put into a separate interest bearing account to pay for future medical expenditures that may be related to an injury. This statute is referred to as Medicare Secondary Payer Statute (MSP).
Medicare Set-Aside is similar to a life care plan but only lists anticipated future medical costs for services, equipment, supplies, and prescription drugs typically covered by Medicare.
It is of utmost importance that you understand your responsibilities when settling a case that involves a Medicare beneficiary, or someone who will be eligible for Medicare (e.g., SSDI beneficiary).
Northeast Life Care Planning can assist you with evaluating the need for a Medicare Set-Aside, review an existing Medicare Set-Aside/Conditional Payment Summary for accuracy, or draft and submit a Medicare Set-Aside to the Centers for Medicare and Medicaid Services for approval.
The provisions of the MSP may be found at 42 U.S.C. § 1395y(b).