I'll admit that the new Govt Insurer's Note does a better job of explaining what MSAs are, but I'm still confused as to how they exactly work.
These MSA's are supposed to be (if I understand) some kind of reserve to pay losses that Medicare would pay in the future when the injured worker becomes Medicare eligible.
In their example, a 63-year-old worker is injured with an anticipated 5 years of medical payments. The claim is closed with a settlement. However, since this worker will become eligible for Medicare in a couple of years, the insurer must set aside some money?
But wait ... why doesn't the insurer already have a reserve in place? And when the worker turns 65, why would the insurer stop paying and allow Medicare to take over (only to have to pay them back)? And where exactly is this MSA held? How is it different than a regular claim reserve?
All I understand is that it's required, and Medicare has trouble collecting. I just don't understand the mechanics ... and would it really be too hard to explain how it all works?
Maybe I'm being dense ... but would love someone to provide a good AHA moment.
These MSA's are supposed to be (if I understand) some kind of reserve to pay losses that Medicare would pay in the future when the injured worker becomes Medicare eligible.
In their example, a 63-year-old worker is injured with an anticipated 5 years of medical payments. The claim is closed with a settlement. However, since this worker will become eligible for Medicare in a couple of years, the insurer must set aside some money?
But wait ... why doesn't the insurer already have a reserve in place? And when the worker turns 65, why would the insurer stop paying and allow Medicare to take over (only to have to pay them back)? And where exactly is this MSA held? How is it different than a regular claim reserve?
All I understand is that it's required, and Medicare has trouble collecting. I just don't understand the mechanics ... and would it really be too hard to explain how it all works?
Maybe I'm being dense ... but would love someone to provide a good AHA moment.
MSAs: What are they good for?
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