What Is an MSA and Do I Need One in My WC Case?

If you have a Medicare card or will likely be receiving one within the next 2 ½ years (30 months) then when you settle your workers' compensation case or liability claim, it is safe to say you will need to have an MSA. A Medicare card comes to you once you are granted Social Security Disability Income Benefits.

An MSA represents money set aside to pay for your future medical care. These funds come from the insurance settlement and are paid for by the insurance company in your case.

The theory behind the creation of the MSA is so that your medical treatment payments after settlement should not be the responsibility of Medicare. The various insurance companies are not allowed to transfer to the Federal Government (Medicare) your treatment costs if there is another source of payments that is or should be responsible for these payments after settlement of your case

Failure to provide for an MSA in the scenario above could have very serious consequences. They are too numerous to detail in this note. You need to speak to your attorney about the creation of an MSA in your case.