What Happens to Medicare Set Aside Proceeds Upon a Claimant’s Death?



Question: I have a Workers' Compensation claim with a 78 year old claimant who is contemplating a $130K settlement of which $6904 of it is the Medicare set-aside (MSA) to be paid out in lump sum. Claimant self-administers. He realizes he must spend down and account for his medical expenses. The concern this elderly gentleman has is that he is afraid Medicare will take the amount not yet spent down in this account should he die in the future. Is that true? Also, can the self-administered account have a spouse's name on it?


Answer: Thank you for your question. Medicare set aside proceeds are to be used to pay for a beneficiary's future injury-related care otherwise covered by Medicare. Should the beneficiary pass away prior to those proceeds being exhausted, they would pass to the named beneficiary on the MSA account. If there is no named beneficiary, then they would pass in accordance with state intestacy statutes. If you would like more information about how they can set up this self-administered MSA, please visit our MSA administration service at www.affiancepartners.com.

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