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Medicare Set-Aside


Medicare Set-Aside (MSA) is the creation of a trust that separates money spent for health care purposes related to a catastrophic injury and money spent for all other purposes when the injured is financially compensated. Limitations are placed on how the money received is spent; a portion of the settlement in personal injury and worker compensation litigation cases must be reserved for medical services and reimbursement of health care expenses properly covered by Medicare or Medicaid. 

The money in the MSA is not subject to Medicare’s lifetime limit on spending for medical expenses. This means that you can use the money in the MSA to pay for any medical expenses, including those that Medicare does not cover, such as long-term care.

Medicare Set-Aside can also help you maintain your eligibility for Medicare and Medicaid. If you do not set aside money in an MSA, Medicare may consider the settlement money to be a resource and reduce your eligibility for benefits.

Among the keys to successful set-aside planning is to arrange for a reliable, capable person to serve as trustee and carry the ongoing responsibility of ensuring that the delineation of funds remains intact. In addition, we establish the specific limits on our clients’ money so that there are no surprises and they can plan confidently, while not going astray of the extensive Medicare guidelines that govern set-aside planning and ongoing trust management.

The Elder Law and Estate Planning team at ThompsonMcMullan provides assistance in these circumstances by ensuring that our clients have the opportunity to weigh the terms of a settlement while understanding how much money will be steered to the Medicare set-aside pot and how much will be accessible for their other needs.

MSA Attorneys in Richmond, VA

There are a few key things to keep in mind when considering Medicare Set-Aside:

  • You must set aside enough money to cover all of your future medical expenses related to the catastrophic injury
  • The money in the trust must be used only for medical expenses
  • You must work with an experienced attorney to set up and manage the trust

If you have been injured in a catastrophic accident, you should speak to an experienced attorney to learn more about Medicare Set-Aside and how it can help you protect your financial future. Contact us today to get started.

Representative Experience

Our Medicare Set-Aside Share Planning practice includes:

  • Pre-settlement set-aside planning for future expenses
  • Guidance for erecting and managing a firewall to adequately set aside expenses for medical care related to personal injury
  • Establishing a trustee to oversee the set-aside trust and ensure expenses are properly disbursed
  • Participating as co-counsel or as guardian ad litem in the negotiation and approval of settlements on behalf of minors or incapacitated individuals

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