What is a Medicare Set Aside (MSA) used for?

A Medicare Set Aside (MSA) is specifically used to allocate funds for future medical services that may be required due to a workers' compensation claim. The primary purpose of an MSA is to protect Medicare's interests by ensuring that the funds set aside can be used for medical expenses related to a work-related injury or illness rather than being billed to Medicare. This is critical because once a claimant becomes eligible for Medicare, Medicare assumes it has the primary responsibility for covering the medical costs of the individual. Thus, it is crucial to have a structured fund in place to cover these anticipated future medical expenses, ensuring compliance with Medicare's guidelines.

By establishing an MSA, the funds are managed correctly and will not impact the claimant’s eligibility for Medicare benefits. This proactive approach allows for medical care related to the workplace injury to be adequately funded, while also ensuring that Medicare remains unburdened by those costs as they arise in the future.