? about Medical Set-Aside money

[Sparky10]

My BF is close to settling this thing. Its been going on for nearly 4 years. As some of you can image, the indemnity has really dwindled.

I understand about the medical set-aside, for the most part. The $$ has to be deposited in an interest-bearing account, and every penny must be accounted for. My question: (I'll just be blunt here) Suppose he takes that $$ and blows it? Buys a car, pays bills, etc....What happens then?

He fully intends to pay for all injury-related expenses out-of-pocket.
He won't be trying to get Medicare to pay.

Does CMS ask for the $$ back? Surely they are going to want to know where the $$ went at some point. Are there legal consequences?

His lawyer is saying the $$ belongs to my BF, but I'm not no sure....

Can anyone tell me about this?

[caudaequinasyndrome]

i think when there is a set aside for medicare, it is withheld by medicare, you have no way of touching the money..ever

[Wink]

Sparky~
See what you gather from these sites. Tell me what you think.

http://www.jjcelderlaw.com/SSDIOffsetMSABull.htm

http://www.cms.hhs.gov/WorkersCompAgencyServices/04_wcsetaside.asp#TopOfPage

[Dabbadoo7]

Wink,
Yonkersguy is right.... your bf does not get the $$, it is held by a separate entity, though not Medicare. Mine is held by a company called MediBill, and they are supposed to be one that is frequently used. In the event of your bf's death, his estate, or designated beneficiaries will receive any funds not used, though it will take a couple of years to get them. It is best that he designate a beneficiary, to avoid any possible probate, depending on what state you live in. And the interst earned goes back into the account, but hewill have to pay the taxes on it, which is a part I definitely do not like. The interest on mine will be a couple of thousand ea/year, but I don't get the benefit of using the $$, unless on qualified med bills. It's not fair to me. If he does get a set-aside, make sure he reads it completely, and understands exactly what it will cover.

Good luck.

Dabbadoo

[Wink]

Dabbadoo7~
I think you meant that for Sparky.

[Dabbadoo7]

Wink,
You're right. Sorry 'bout that.

Dabbadoo