As most trial lawyers know, when a personal injury lawsuit settles it is incumbent on the parties to protect Medicare’s interests by: (a) repaying any conditional payments advanced by Medicare to pay for treatment related to the occurrence, and (b) taking reasonable good-faith steps to make sure that Medicare is not going to be charged with paying for future treatment related to the occurrence, where the plaintiff was likely compensated for those future medical costs in the settlement.
“[T]he prohibition from billing Medicare for future services extends to all those services related to what was claimed and/or released in the settlement, judgment, or award. Medicare’s payment for those same past services is recoverable and payment for those future services is precluded by Section 1862(b)(2)(A)(ii) of the Social Security Act.” Centers for Medicare and Medicaid Services Handout/Stalcup Memorandum, May 25, 2011.
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