Question: Regarding a plaintiff attorney's contractual obligation, can we tell our clients that, when a settlement payment comes in, we plan to process our attorney fees and hold the rest until the lien has been satisfied, or must the entire settlement amount, including our fees be held?
Answer: According to the Medicare contractors at MSPRC, they presume attorneys will take their fees and expenses from the gross settlement, prior to Medicare reimbursement. Having said that, if there is any concern that there may not be sufficient funds to cover that reimbursement obligation, we recommend you escrow the entire settlement, provided there are no needs-based government benefits(such as SSI and/or Medicaid) to protect.
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