What are MSAs?
Federally mandated accounts for funding of future injury/illness related Medicare allowable expenses for qualified individuals.
Why are MSAs Required?*
To shift the burden of responsibility from Medicare to the rightful primary payer.
*From 1981 to 1998, Medicare paid $43 billion in benefits that were the responsibility of Workers’ Compensation. (SOURCE: GAO Report)
How are MSAs Funded?
Via the establishment of an interest bearing account with a proper funding mechanism and administration oversight.
Who Qualifies for MSAs?
Medicare recipient at the time of settlement.
or
Claimant has a "reasonable expectation" of Medicare enrollment within 30 months of the settlement date and the anticipated total settlement amount for future medical expenses and disability/lost wages over the life or duration of the settlement agreement is expected to be greater than $250,000.
When are MSAs needed?
Prior to settlement agreement.**
** Submission to CMS regarding adequacy of proposed funding should be pursued.