A Workers’ Compensation Medicare Set-Aside Arrangement (WCMSA), Liability Insurance Medicare Set-Aside (LMSA), and a No-Fault Insurance Medicare Set-Aside (NFMSA) allocates a portion of the settlement to cover future medical services related to injury, illness, or disease. MSAs anticipate future medical costs for services, equipment, supplies, and prescriptions covered by Medicare. The MSA allocation must be depleted before Medicare will pay for treatment related to the injury, illness, or disease. The MSA determines the amount from the settlement that should be “set aside”.
Overfunding an MSA does not help the person with an injury and has potential to hinder negotiations during settlement.