The Official Medicare Set Aside Blog And Information Resource: Recent Comments

Comment on Ask Jen: Concerns about MSA Annuities

Brad Bleakney — Fri, 27 Jun 2008 15:49:51 GMT

Jen --
Thanks for both the answer and the reference in direct link to the answer and the CMS Memo. That's why you are the expert to ask.

I like the original approach of a cost of living adjustment built right into the yearly or monthly structured settlement annuity payment as more reflective of true projected future medical costs.

I understand that calculation of present cash value amounts on future medical expense or the calculation of a projected cost of living increase (even if based on the historical rate of medical cost inflation) are both subject to the same criticism of speculation used in assumptions for the percentage rates used in the actual math.

Insurance carriers and self insureds are certainly not going to volunteer the cost of living increases if they are not currently required by CMS. Why would they ever consider it unless the claimant's attorney specifically insisted for some type of accommodation in settlement.

I would like to see a trade off for CMS to require the funding of expected cost of living increases on non-disputed claims in exchange for more accurate reductions in MSA calculations to reflect the actual "compromise" value in disputed settlements.

I my opinion carriers and self insureds would save a lot more money if MSAs were adjusted to reflect the actual true value of disputes in settlements.

Just a thought. I know you don't make the rules. --Thanks --Brad

Comment on Attitudes Towards Structured Settlements

Jimmy — Wed, 18 Jun 2008 08:39:25 GMT

I think the AIG study confirms what we all intuitively knew. It certainly appears that there is a screaming need for increased awareness in the legal community so that they can better represent their client needs.

What's really bad are the law firms that attempt to represent as experts in this arena and obviously don't understand what they are dealing with. They aren't doing anyone any favors. Would be interesting to see the MEDVAL position on attorney education needs. Suggestion for a post perhaps?

It's good to see MEDVAL succeed.

Comment on Medicare Set-Asides: When CMS Review is Not Available

WorkComp Chicago — Wed, 14 May 2008 14:37:06 GMT

Jen:
I am a work comp attorney in Chicago. Our settlements are most often a compromise of disputed and undisputed issues usually for a dollar value much less than full value of the claim would have been. We are not seeing a proportional reduction in the MSA allocations that reflects the percentage off of full value. What are the rules, guidelines & expectations here?? Thanks--Brad WC-Chicago.com