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Milestone Consulting, LLC
(716) 883-1833

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.

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