Can You Use Medicare Set Aside (MSA) Money to Pay Child Support?

by John Darer CLU ChFC MSSC RSP CLTC

You may not pay child support out of your Medicare Set Aside account

The funds in the Medicare Set-Aside Account (MSA) shall be placed in an interest bearing account and used solely for legitimate medical expenses incurred for those medical needs related to or resulting from your work-related or accident related injury, which would otherwise be reimbursable or paid for by Medicare. Funds in the Medicare Set-Aside Account shall not be used to pay for medical services not covered by Medicare.

A copy of the booklet, Medicare & You, can be obtained from your local Social Security office for a list of services not covered by Medicare. If there are any questions concerning what Medicare covers, you can also call 1-800-MEDICARE.

All interest earned on the Medicare Set-Aside Account accrues in the account and can only be used solely for medical expenses, that would otherwise be covered by Medicare.

In the event CMS determines that Medicare has paid benefits prior to the depletion of funds in the Medicare Set-Aside Account that should have been paid by you, CMS, or its designated intermediary or carrier, has the right to seek and receive reimbursement of any such conditional payments or overpayments from the Medicare Set-Aside Account to the extent that there are funds remaining in your  MSA account at that time.

You must maintain maintain accurate records of the distributions and expenditures from your Medicare Set-Aside Account

Such records should show the date of service, the diagnosis, the service you received, the doctor or service provider you paid, and the date you made payment. Be sure to keep receipts or other evidence of every payment made from your Medicare Set-Aside Account.