More and more these days, personal injury clients are likely to be Medicare recipients. Most if not all of my clients who do have Medicare are surprised to learn that the federal government is very aggressive about pursuing repayment from someone who has recovered money from a personal injury claim or lawsuit. If Medicare has paid for any care at all that is related to the injuries for which the individual recovers money, the federal government is entitled to be repaid. This is a less of a problem in car accidents where no-fault insurance is the primary payer (in New York State and others but not in Vermont). Two points are worth mentioning here: if you or a family member is hurt in an accident and receives Medicare, make sure that Medicare is billed only as a last resort. The other point is that dealing with Medicare has traditionally been one of the most challenging parts of a case. It can take months or years to settle Medicare claims, which has meant that settlement funds sit in the bank, helping no-one.
With thanks to AAJ and others, the SMART Act, signed into law by President Obama on January 19, 2013 is a step in the right direction toward faster resolution of Medicare claims. The SMART Act, among other things, creates deadlines for payment notification, requires up-to-date and accurate claim information and, perhaps most importantly, requires Medicare to give us a good idea of what they are looking for before settlement.
This is good news for personal injury claimants and the lawyers who represent them. And a good reason to support AAJ.