What is the purpose of a Medicare Set-Aside arrangement?
The Medicare Secondary Payer (MSP) statute was created in 1980 to ensure that Medicare was secondarily responsible for payment of medical expenses incurred by Medicare beneficiaries who were also covered by other insurance carriers. This statute was established in an effort to maintain the solvency of the Medicare benefit program by preventing insurance companies and other payers from shifting the burden of future injury-related expenses to Medicare. The development of a Medicare Set-Aside allows parties to satisfy the requirements of the MSP by considering Medicare’s interests when settling future medical expenses. Although this statute has been in place since 1980, the Centers for Medicare and Medicaid Services (CMS) have only recently begun to aggressively seek set-asides for qualified settlements.
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