How does subrogation apply if you are covered by Medicare?
In general, Medicare has a first priority, automatic right to subrogation out of a recovery by a Medicare beneficiary from a defendant or the automobile liability insurance covering that defendant. It is entitled to seek reimbursement by either independent action against the defendant or by subrogation from your recovery.
If you expect to incur future medical bills that will be covered by Medicare, there are more issues for you and your lawyer. On January 1, 2011, significant changes in the law will go into effect. The defendant's insurance company will be required to report your claim to the "Centers for Medicare and Medicaid Services (CMS)." The law may then require you to create a "set-aside." A "set-aside" is a portion of your recovery that must be reserved for future medical expenses arising from the accident. To determine the amount reserved in the "set-aside," CMS will review the settlement itself and attempt to determine how much those future expenses may be. This means that not all of your settlement would be available to you.
IMPORTANT NOTE: the new law is unclear whether or not Medicare is authorized to require set-asides in automobile accident cases. However, as long as Medicare may make such a demand, your lawyer must be able to contend with it and plan accordingly. The Quinn Law Firm is well versed in these changes and will be able to see you through the current law and through the future law.
What can the Quinn Law Firm do for you?
As you can see, the legal issues dealing with subrogation rights of Medicare are extremely complex. Therefore it is extremely important that you hire a law firm with a full understanding of these issues. At the Quinn Law Firm, we have lawyers who possess the skill, knowledge, and experience to navigate these treacherous waters. Contact us today for a FREE CONSULTATION to discuss how we can help you protect your rights and get the most out of your injury case.
