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Death to MSA Annuities?


Death to MSA Annuities?



Why You Should Care About Senate Bill 3079

On June 18, 2018, Senator Rob Portman (R-OH) introduced Senate Bill 3079, Medicare Secondary Payer and Workers’ Compensation Settlement Agreements Act of 2018. The Bill introduces several initiatives aimed at streamlining the CMS Medicare Set-Aside review and appeals process, including an option to allow MSA funds be paid directly to Medicare. The Bill suggests an alternative to self or professional administration of a MSA – optional “direct payment” of the MSA to CMS.

Not only will the “direct payment” option have the potential to significantly reduce the number of MSA annuities used in Workers Compensation and Liability settlements, it will negatively impact injured parties post settlement:
·    Increased costs since the injured worker will be subject to Medicare co-pays and deductibles.
·    Reduced access to care since the injured worker would be restricted to Medicare-approved providers.
·    Injured worker will be 100% reliant on government Medicare benefits.
·    Potential overpayment to Medicare if the injured worker underspends the MSA funds, removing opportunity for savings or final distribution to a beneficiary.

Our firm is keeping a close eye on these developments and all others with respect to the structured settlement industry and will keep you apprised of any important developments.

For 20 years we have been Michigan's best and only plaintiff focused structured settlement consultant.

If you have any questions or would like a custom structured settlement annuity quote on one of your cases please don't hesitate to contact us at cyril@whitehousellc.com or (734) 433-1670.

We look forward to seeing many of our plaintiff attorney friends at the Michigan Association for Justice No-Fault seminar tomorrow!

www.whitehousellc.com 

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