New Medicare Rule
Medicare continues to make efforts to try, post Haro v. Sebelius, to make for an easier solution for dealing with Medicare liens. The latest? In very small cases, the types of cases more likely to be handled by injury victims themselves as opposed to personal injury lawyers, Medicare will offer a 25% gross payment alternative to dealing with Medicare on a lien.
It is certainly not the deal of a lifetime by any stretch. More importantly, it is only for cases that do not exceed $5,000. But the option applies in:
- Cases after November 7, 2011
- Involve physical injury
- $5,000 or less
- The option is selected in a to-be-determined time frame
- Medicare has yet to make a final demand
- The beneficiary does not expect to receive future third party injury payments
Obviously, locking in gives you some measure of certainty, assuming you know what Medicare paid. The problem is that once you lock in, you lock in. So if the facts change or the victim/lawyer makes the wrong call, there is no turning back.
- My original Haro v. Seblius post (the case that may have started Medicare/Accident Lawyer glasnost)
- Court rules on motion to enforce settlement when insurance company balks over lien issues
- Lien Resolution Services blog post
- ERISA liens and the "made whole" doctrine
- Five things you don't know and should know about personal injury accident liens
