Qualified Settlement Funds and Medicare Set Asides

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Question: Do you recommend using a Qualified Settlement Fund while any MSA issues are being resolved? What about including provisions in a Supplemental Needs Trust to pay for either past or future bills?

 

Answer: Great question! We think using a Qualified Settlement Fund ('QSF") is a win/win solution for parties who are resolving claims with MSP reimbursement issues (conditional payments, Medicare Set Asides or both). By establishing a QSF, a separate stand-alone legal entity, the defendant or insurance carrier can pay into the QSF and then walk away with no further exposure on lien and future medicals issues. Instead, that liability is taken on by the QSF. With funds in the QSF, the plaintiff then has the ability to resolve lien issues post settlement as well as properly address MSA issues. However, with respect to a supplement or special needs trust, CMS guidance has advised in the past that funding that is not sufficient, in and of itself, to properly address MSP reimbursement issues. If you want more information about the benefits to all parties in utilizing a QSF when resolving claims with MSP issues, please contact us.

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