The Distinction Between Medicare and Medicaid | Tulsa Business Journal

by John Darer® CLU ChFC MSSC RSP CLTC

 

Medicaid is an asset sensitive program. Medicare is not. 

 

It's ironic that fundamental difference was lost on a Tulsa Business Journal reporter covering the a story about an Endowment in Settlement Planning, a Continuing Legal Education program at the University of Tulsa Law School on April 9, 2012  .Here's the excerpt:

 

"It is not possible for an attorney to just 'walk away' after winning a settlement case.

 

One lawyer several years ago did just that after winning a multi-million dollar medical malpractice case  for a client whose child suffered catastrophic injuries at birth. Everyone expected the child to have a short life span. The award removed it from the Medicare (sic) roles. The child lived and when the award money was gone again qualified for Medicare (sic). The parents, however, sued the lawyer for malpractice and won because they were not advised on how to properly handle and invest the money.Referring to the medical malpractice case and subsequent suit against the attorney, (Dick) Risk said there are special needs trusts that provide a safe haven for settlement monies. Had that original money been properly handled"

 

Comments

1. A Special Needs Trust is designed to preserve eligibility for Medicaid, not Medicare, for trust beneficiairies who are disabled or mentally ill.
   
2. SoonerCare is the Oklahoma Medicaid program. The Oklahoma Health Care Authority is the primary entity in the state of Oklahoma charged with controlling costs of state-purchased health care
3. A Medicare Set Aside Arrangement is an entirely different idea that is based on the premise of protecting Medicare's interests and is designed to provide for primary payment of a claimmant's Medicare eligible expenses related to an accident or injury.
4. An MSA doesn't have to be a trust. By definition a Special Needs Trust does.
5. An MSA can be self administered.  The traditional 3rd party SNT cannot be administered by the trust beneficiary.
6. Sometimes there is a need for an MSA and and an SNT
   
7. With a Structured MSA, exhaustion of the annual structured payout on eligible expenses will trigger Medicare picking up Medicare eligible expenses related to the injury, for someone who has qualified to receive Medicare.
   
8. My main concern is seeing that the public gets accurate information and finds it in the fastest way possible.
   
9. Even if there is a tight deadline, why don't some professional journalists do their research? Unfortunately this leads to third parties citing the inaccurate articles in marketing materials or on their websites For example,see "Failing to Structure Lost All Medicaid AND Medicare Benefits Until Minor Turned Age 18" Structure Brokers Waving Pink Elephant!?? June 15, 2011

Thanks for reading!