MSA for Liability Claims

Currently, SB 2499 does not specifically require primary payers in liability context to begin including an MSA in their settlement agreements. This approach has many risks and may result in significant exposure.

We suggest a proactive approach in order to minimize potential liability for non-compliance, despite having no standards or guidelines on MSA’s in liability settlements. As part of a liability settlement, any person who is 62 ½ years old and who settles a claim should be required to have an MSA. In addition, persons who have filed for or are currently obtaining Social Security Disability (or SSD) are also considered to be eligible for Medicare and an MSA should be required as a condition of settlement. While the MSP does not establish a current monetary threshold for the preparation of an MSA in liability cases, it is likely that in the future CMS will adopt guidelines similar to those used for WC cases.