Q. What does "Medicare Eligible" mean?
A. A person is Medicare eligible if he or she is:
65 years or older;
On Social Security Disability for 24 months or longer; or
Suffering from End Stage Renal Disorder
Q.
Is It Necessary To Set Up A Workers Compensation (WCMSA) If Medicals Are Left Open?
A. No, the CMS website states that "it is not in Medicare's best interest to review every WC settlement nationwide in order to protect Medicare's interests per 42 CFR 411.46. (Ref: 7/23/01 Memo Q1(c)) A WCMSA is not necessary when resolution of the WC claim leaves the medical aspects of the claim open".
Q. Can the beneficiary or the administrator of a Medicare Set Aside trust pay income taxes due on accrued interest in the trust?
A. Interest on funds held in an MSA account (whether self-administered or in the form of a trust or custodial account) is attributed to the claimant/plaintiff who receives an IRS form 1099-INT after the end of each calendar year. The interest on funds held in the MSA is considered taxable income and must be reported by the claimant/plaintiff on his or her Form 1040, or 1040-EZ, when they file their tax return. The MSA account CAN however, provide the funds to pay any income taxes due on MSA income. In other words, the MSA can reimburse the claimant/plaintiff for its share of taxes and this reimbursement is not considered income by the IRS. CMS does allow payment of taxes from the MSA. Sufficed to say there should be adequate documentation of the t ax for the annual accounting of the MSA.Support can be found in the 7/11/05 CMS Memo Q6.
Q.
How is a Jones Act case treated under the Medicare Secondary Payor statute and regs?
A. Jones Act cases are treated as liability cases under the Medicare Secondary Payor statute and regulations.
Q.Can the beneficiary or the administrator of a Medicare Set Aside trust pay income taxes due on accrued interest in the trust?
A. Interest on funds held in an MSA account (whether self-administered or in the form of a trust or custodial account) is attributed to the claimant/plaintiff who receives an IRS form 1099-INT after the end of each calendar year. The interest on funds held in the MSA is considered taxable income and must be reported by the claimant/plaintiff on his or her Form 1040, or 1040-EZ, when they file their tax return.
Q.
Can an MSA annuity (annuity to fund Medicare Set Aside) be sold or transferredfor a lump sum?
A. Annuities purchased on behalf of worker's compensation claimants cannot be sold or transferred for "cash now".
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