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24 J. Legal Econ. 29 (2018)
Medicare Set Asides

handle is hein.journals/jole24 and id is 38 raw text is: Paul R. Bjorklund. 2018. Medicare Set Asides. Journal of Legal Economics 24(1-2): pp. 29-35. Medicare Set Asides Paul R. Bjorklund Abstract: A Medicare Set Aside is a financial arrangement whose purpose is to protect Medicare's interests where future medical expenses and prescription costs are involved. This article describes Medicare Set Asides and their application to forensic economics engagements. I. Introduction When a personal injury lawsuit ends, a number of financial issues and considerations can come into play. For example, a plaintiffs monetary settlement could take the form of a structured annuity, or it could be assigned to a special needs trust. There may be other assignments, subrogation, and tax compliance issues as well. One particular litigation instrument that has received more attention recently is a Medicare Set Aside (MSA). Although actual funding of an MSA is set in motion after the conclusion of the case, a forensic economist can, at times, be asked to address an MSA and its ramifications even before the lawsuit ends. This article provides a general overview of MSAs and their potential applications to a forensic economics practice. II. The Medicare Set Aside Enacted into law in 1965, the Medicare Amendment to the Social Security Act originally designated Medicare as primary payer of medical expenses arising out of lawsuits. This changed in 1980, when the Medicare Secondary Payer Act (MSP)2 revised the status of Medicare from primary to secondary payer, thus placing responsibility for payment on liable parties first and on Medicare only afterwards. More recently, in 2007, reporting requirements were added for Paul R. Bjorklund, CPA, Bjorklund Consulting, Ltd., 51355 N. 295th Avenue, Wickenburg, Arizona 85390; (928) 310-8652; paulbjorklundgaol.com 1 Pub. L. no. 89-97, 79 Stat. 286 (1965) 2 Omnibus Reconciliation Act of 1980, Pub. L. no. 96-499, §953, 94 Stat. 2599 (1980); 42 U.S.C. §1395 et seq. (2011) Bjorklund: Medicare Set Asides 29