There has been much discussion on liability MSA’s.  Are they needed?  Not necessary?  Conflicting reports and a statement by the AAJ has continued to make things complicated.  As a Medicare Set Aside allocator, my position is that Medicare’s interest must be protected per Section 111 of the MSP.  I have outlined a simple equation here for quick reference.

Mr. Synder recented posted a comment on LinkedIn as to his thoughts.  I found it well stated.

Link to statement by AAJ

Nothing in the quotes AAJ cites undermines the insurance industry’s position. Medicare could always seek reimbursement of a conditional payment from the insurance carrier– as well as from the plaintiff’s attorney! The new reporting law allows Medicare to connect the dots and deny payment for treatment which matches the body part code, diagnostic code and occurrence date of the report.
Any plaintiff’s attorney who tells his client that an allocation, i.e., set-aside, is unnecessary puts the client at risk for loss of Medicare benefits, and possibly is putting his/her own E&O insurance on the line.
By Teddy Snyder (Linked IN)

Is there future medical care involved?  Is there a permanent shift of burden?  These things may equate to the need for an MSA (Medicare Set Aside).  Use this equation to determine if an MSA is necessary in your legal case.

FCC + PBS = MSA

The requirement is to protect Medicare’s interest (per SCHIP Section 111)

This can be accomplished formally or informally.  A more formal protection of Medicare’s interest would be in the form of an MSA report.

MSA (where FCC = Future Cost of Care; PBS = Permanent Burden Shift, and MSA = evaluate the need for a MSA/do an MSA report).

As a Certified Medicare Set Aside Consultant, I can assist you with your Workers Compensation or Liability set aside allocation.  Contact me today for any questions, concerns or even to speak to your group about how you can protect yourself as well as Medicare’s interest.