What is a MSA Structured Settlement?

• Recognized and encouraged by IRS since mid-1970's and Approved by Medicare for Medical Set Aside Funding

• Pays benefits over time rather than a lump sum today.

• Designed to Match Medical set Aside Claimant Needs.

• Reduces Liability Holder's MSA cost by 20 to 50%

• Provides claimants with a secure, predictable tax-free income to pay Medicare reimbursable expenses.

• Is a claims resolution to0l beneficial to all stakeholders.

• Enhances best case outcomes in negotiated settlements. 

• Preserves assets for future medical payments.

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Basic Components of a structure

Preiodic Income - Weekly, Monthly or Annually

• Pays periodic payments into Medicare Set Aside Medical expense trust accounts

• Pays Non Reimbursable Medicare medical expenses

• Pays wage replacement income (for as long as lifetime)

• Pays Survivorship payments to spouses and children

Lump Sum Payments

• Wage settlements can include lump sum payments for:

• College tuition

• Home Mortgage payments

• Retirement supplement (no age distribution restrictions)

Attorney Fees

• Attorney Fees can structure Periodically or Lump Sum

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When to Structure a msa

Consider structuring the MSA whenever these conditions exist:

• When your MSA value exceeds $30,000 or more And... Your claimant is expected to live at least 10 years.

• Your claimant's life expectancy is reduced by poor health conditions.

Also Consider Structures on Indemnity Claims:

• Survivorship Claims - Replacing spouse or Children Income.

• Any Severe Injuries with shortened life expectancy. 

• Minor or Mentally Incompetent person

• Claimants with limited investment or financial skills.

• Plaintiff demand and offer are FAR apart.

• Structure Attorney Fees on Workers Compensation claim are Tax Deferred! 

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Advantages of funding MSA's with Periodic payments (structures)

CMS will approve a payout amount for services that would otherwise be reimbursable by Medicare from the Medicare Set-Aside Arrangement in a STRUCTURED format:

• Cash to SEED the MSA with Annual annuity payments.

• Approved by Medicare

• Saves Liability Holder 20% to 50% off the MSA - Average savings from Lump Sum is 46%

• Individual Trust Accounts are available. No Pooled Assets means Claimant knows exactly how much they have.

• Guaranteed Payments from A rated Life Insurance Companies means the money will ALWAYS be there.

• Helps protect the injured worker from improperly dissipating MSA funds.

• Tax Free Payments under IRS Code: 104(a)1

• Structuring is the MOST cost efficient method:

• Frees up scarce settlement authority to address other needs; i.e. Indemnity and Non-Reimbursable medical.

• Medicare Agrees to cover any shortfalls in Annual Funding until next annuity payment is deposited.

• Hathaway Settlements office obtains the most cost effective annuity products at the best possible rates.