If you have a client on Medicare whose personal injury lawsuit is about to settle, he or she may be considering a liability Medicare set-aside (LMSA) – a voluntary arrangement that demonstrates a good-faith effort to fund future care without relying solely on Medicare. But are LMSAs always necessary?
Generally speaking, a Medicare set-aside is typically not recommended if none of the settlement money is intended to go toward covering future medical care; but a Medicare set-aside might be helpful to maintain eligibility if some of the settlement proceeds are intended to cover injury-related expenses. As there are some nuances around determining whether or not an LMSA is a necessary consideration for your client’s unique situation, it is always best to consult a professional.
Most standard Medicare compliance firms charge $1,500-$2,500 for liability Medicare set-asides.
At my firm, we charge just $2 – less than 1% of the standard asking price – for a comprehensive memorandum that will provide clear and proper guidance, including whether or not an LMSA is a necessary or required part of resolving your case. And more importantly, 99.9% of the time, our compliance memorandum will be a zero allocation recommendation.
Think about it this way: you wouldn’t negotiate the repayment of a lien if you had legal standing not to. Why would you? To that end, there are no state or federal regulations mandating that one establishes a liability Medicare set-aside. So why have your client pay the standard $1,500-$2,500, when 99.9% of the time all they really need is $2?
Don’t let compliance firms use fear to push your client into an LMSA. Give me a call today.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).