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New House Bill Attempts to Change Medicare Set Asides

On July 26, 2018, HR 6619, known as the “Medicare Secondary Payer and Workers’ Compensation Settlement Act of 2018” was introduced in the House of Representatives. The purpose of the bill is to amend Title XVII of the Social Security Act to provide for Medicare Secondary Payer rules to certain workers’ compensation settlements and qualified MSA provisions. The bill contains provisions that could materially change the current MSA landscape. In short, it allows for: The claimant or the payer may elect to calculate the MSA amount of the agreement by applying a percentage reduction to the MSA amount for the total settlement amount that could have been payable under the applicable WC law. Both

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