Most people do not know that when they settle their personal injury claim, they almost always have to repay Medicare for the medical bills from the accident that Medicare paid.  Medicare is what is known as a "secondary payer" which means they do not pay if there is auto insurance medpay or other policies of insurance to pay first. If they do pay, they are entitled to get their money back upon settlement time.  If you do not repay Medicare the bills they paid, you can lose your Medicare benefits and you and your lawyer can be in big legal trouble.  Don't count on the insurance adjuster to always handle this for you.  

Medicare will usually give you a reduction of up to 1/3 of the money they paid the medical providers from the auto accident. Your lawyer can also negotiate with them if there is not enough auto insurance or it would not be fair for Medicare to get all the money.  This makes a lawyer valuable. Auto insurance adjusters won't get this discounted repayment for you.

As for future accident related medical bills, you cannot just settle your claim and make Medicare pay all of these future bills anymore.  You may have to take part of your settlement and put it in what is called a "Medicare set-aside trust" to pay future accident related expenses from the accident. If you do not do this and you have accident related expenses in the future, you can lose your Medicare benefits. Medicare can come back years later and ask for this money if you do not set up a trust when necessary.  

You need a Medicare set aside trust if you:

• Are or will be on Medicare in the next few years
• Have future accident related medical bills
• Medicare would be the one paying them (not BWC or private health insurance)
  

Don’t lose your settlement to Medicare or your Medicare benefits. Insurance adjusters will not deal with helping you set up this trust.  Your lawyer can set it up and make sure the amount is as small as possible so that you get to keep as much of your settlement as possible.  That is why a lawyer is so valuable. Bet you did not know you could lose your settlement, or lose your Medicare benefits if you do not settle your case correctly.