Can Medicare Take Money From My Car Accident Settlement?
If you’ve been in a car accident and receive medical care through Medicare, you may be wondering whether the federal program can take a portion of your settlement. The answer is yes, and it’s important to understand how this works to avoid legal or financial issues.
Why Medicare Can Claim Part of Your Settlement
Federal law requires that Medicare be reimbursed for any medical expenses it paid that are related to a personal injury case. This prevents a situation known as “double-dipping”, where a claimant would receive both Medicare funds and a third-party settlement for the same medical costs.
Specifically:
If Medicare paid for treatment related to your car accident injuries, you are legally required to reimburse them from your settlement.
Attorneys are required by law to ensure that Medicare liens are paid when settling a personal injury case. Failing to do so could make the attorney liable, so it’s in everyone’s best interest to comply.
You may occasionally negotiate a reduced repayment amount, but in most cases, Medicare will recover what it reasonably paid for your injury-related care.
How It Works in Practice
Medicare identifies your claim: When you file a car accident claim, your attorney or insurance company must disclose your Medicare status.
Lien verification: Medicare establishes a lien, outlining the amount it paid for your accident-related care.
Settlement allocation: When your attorney settles your case, they pay Medicare from the proceeds for the services that Medicare covered.
Final reimbursement: Any remaining settlement after medical bills, liens, attorney fees, and other costs is yours to keep.
This process ensures compliance with federal law and prevents potential legal consequences.
Why You Should Work With an Experienced Personal Injury Attorney
Handling Medicare liens can be complex:
Calculating the exact amount owed requires knowledge of federal rules.
Attempting to settle without accounting for Medicare could lead to legal liability for both you and your attorney.
A skilled attorney can help negotiate liens when possible and ensure you keep as much of your settlement as legally allowed.
Takeaway
If you used Medicare for car accident-related medical care, a portion of your settlement may be required to repay Medicare. Working with an experienced personal injury attorney ensures compliance with federal law, avoids penalties, and helps protect the remainder of your settlement.
