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I live in ny , Im getting a section 32 WC buy out , can I spend my Medicare set aside money or close out the account ?

Fredonia, NY |

I understand Medicare won't cover any medical but I want to no if I will get into legal trouble if I spend my set aside money ? Thank you

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Attorney answers 1


Your question raises the concern that you do not fully understand the purpose of a Medicare set aside fund and what happens when it is exhausted. Medicare won't cover expenses now, but that does not mean that will always be the case in the future if you manage the fund correctly until it is gone. If you do not use the fund for its intended purpose, or fail to document appropriate expenses, when the fund is exhausted you run the risk of Medicare refusing to pay for medical care for your work injury. The fund is regulated by Medicare rules, and you need to discuss your specific obligations under the terms of your settlement and the potential risks and consequences with a workers' compensation attorney to ensure you fully understand what the fund is for and what happens when it runs out.

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