Government Benefits & MSAs
Many people are unaware of how structured settlement funds can affect government benefits. As a claims expert, being aware of all implications of a structured settlement is important throughout the settlement process.
How Settlements Can Impact
Government Benefits
In workers’ compensation and third-party claims, settlements can increase a client’s assets. Their assets are used to determine eligibility for SSI and Medicaid. When assets increase due to a settlement, it can suddenly make a client ineligible for the benefits they have previously received.
For injured individuals with complex and long-term care needs, this is crucial. Individuals who may be affected by this change may choose to place their settlement funds in a special needs trust. This can be used to cover needs such as:
Medical and personal care public benefits will not cover
Companion animals
Transportation costs for injured parties & their caregivers
Since each settlement is unique, the outcome of fund allocation will differ.
Medicare Set-Asides (MSA)
What is an MSA?
A Medicare Set-Aside (MSA) is a financial agreement that designates a portion of the funds from a personal injury settlement for future injury-related medical expenses.
How Does an MSA Work?
An MSA works to protect Medicare benefits to ensure the settlement covers related care until the funds run out, not Medicare. An MSA ensures that Medicare is the secondary payer and is not responsible for the bills that the settlement should cover. This works to prevent the suspension of benefits. Clients may consider an MSA whenever future medical benefits are involved in the claim.
At Ringler, we strive to educate all our partners about the many impacts structured settlements can have on everyone involved in the process. If you have more questions about government benefits & MSAs and their role instructured settlements, a Ringler associate will be glad to assist you.
