Hi everybody, this is Jill Bollwerk. As promised, I’m going to discuss the various repayment obligations that can arise in a personal injury case.
In a prior video, I explained that there are many different entities that may seek repayment from your personal injury settlement. It is critical to understand who those entities are and what their rights are before you settle your case.
Medicare and Personal Injury Settlements
The first repayment obligation I want to discuss is Medicare. If you are a Medicare recipient, you are required to reimburse Medicare for any medical bills it paid that were related to your accident.
Medicare is considered a payer of last resort. This means Medicare only pays medical bills after all other responsible parties or insurance carriers should have paid them.
In a personal injury case, however, you typically do not receive money from the at-fault driver or their insurance company until the case settles or a verdict is reached. Because of this delay, Medicare will often make what are called conditional payments while your case is pending.
Medicare will pay the accident-related medical bills upfront, but it does so with the expectation—and legal requirement—that those payments be reimbursed out of your settlement or verdict.
Consequences of Failing to Repay Medicare
If Medicare’s conditional payments are not properly repaid, serious problems can arise. Medicare may assess penalties and interest, and it can even create issues with your future Medicare benefits.
It is vital that Medicare repayment obligations are handled correctly before you settle your case.
I strongly advise Medicare recipients not to settle a personal injury claim on their own without first speaking to an attorney. I have seen situations where individuals on Medicare settled their cases independently, and the insurance company failed to properly address Medicare’s conditional payments. As a result, those individuals were left personally responsible for thousands of dollars in penalties.
Talk to a Lawyer Before Settling If You Are on Medicare
Do not let this happen to you. If you are a Medicare recipient, make sure you speak with a lawyer before accepting any settlement.
If you believe you are receiving a fair settlement offer but want a second opinion regarding Medicare repayment issues, feel free to contact our office. We are always happy to review the situation and offer guidance.
If you need representation or additional help, we are here to assist you.
In the next video, I will discuss repayment obligations related to Medicaid.
Stay tuned, and we’ll talk to you soon.