Medicare Set Aside

I received a bill from Medicare. It was my first.

As part of the Workmen’s Comp settlement, the insurance company issued a check for almost $100,000 to be deposited into a separate interest bearing account to reimburse Medicare for specific services. It is called a Medicare Set Aside.

Medicare feels that my workplace caused my condition and refuses to pay for specific costs related to the injury.

The list of what is to be billed to me includes pulmonary doctor visits, PFTs, CT Scans, oxygen equipment rental, and a few others items for the estimated rest of my life in Medicare dollars, which is just a small fraction of Insurance dollars. Oddly enough, there was no provision made for my medications, which costs Medicare many thousands of dollars a year. Since it was not listed in the agreement, Medicare picks up the costs.

So, I was nervous as I opened the bill. It listed everything from the appropriate list of billable services beginning the day of my settlement, February 8, 2008 through December 2009. So, it would include everything for 22 months. I was becoming more nervous.

I started to giggle. The total to be reimbursed to Medicare was a grand total of $1,688.11. So much less than I expected!

What I don’t know:

• Who gets the remaining money in the account when I die? I listed William as the beneficiary on the account but have warned him not to spend the money for a while. He may have to pay Medicare back.

• Who pays the taxes on the interest it incurs? I guess I do, I think?!?

I do know that if the account is depleted before I die, Medicare will cover all my medical costs.

So, the question I have is why not just writing a check for the full amount in the account to Medicare. They can keep track of it, as they will eventually pay all the bills, God willing. Why put the managing of the account into the hands of an ill person? Just one more thing I have to teach Michael.