Question: On a PI case, since the obligation to repay Medicare in the first instance is that of the client, and since Medicare cannot be paid from our fee, is there any reason we cannot take our fee (and disbursements) from escrow once the insurance cheeck clears and pay ourselves in all cases while awaiting the Final Demand letter? Is there authority in saying this is proper or improper? Thank you. (New York Attorney)
Answer: Attorneys are entitled to take fees on undisputed amounts. Please see our firm's practice tip on the Haro case to support this position. Of course, you will want to make sure you hold back enough proceeds to reimburse Medicare. In order to do this, we recommend you conduct a thorough evaluation of medical bills and take a conservative approach to establishing a hold back. Providers have many months to bill Medicare and the reimbursement amount may increase before receiving Medicare' s final demand. Finally, your client, as well as you, have direct liability for failure to properly consider and protect Medicare's interest.
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