Best Option for an MSA

Why a Structured Settlement May Be the Best Option for an MSA

A Medicare Set Aside (MSA) is the preferred vehicle for protecting Medicare’s interest. There are two options for funding an MSA: a lump sum or a structured settlement. A common misconception that attorneys have about structured settlements is that they are a time-consuming task. They figure, why bother when it’s likely that their client will prefer a lump sum payment. Contrary to what some attorneys believe, funding an MSA with a structured settlement may be the best option for some clients.

Why Choose a Structured Settlement?

Structured settlements can save your client’s money over time because it allows you to fully fund the Medicare set aside allocation at the lowest cost possible. This is cheaper than funding with cash. Once the funds are exhausted within an annual period, Medicare will then pay medical costs for the remainder of that period. With a lump sum, on the other hand, the MSA must be depleted entirely before Medicare resumes as the primary payer.

Benefits of a Structured Settlement

Attorneys must remember their obligation to their clients when resolving their cases. It is to first protect Medicare’s interest while maximizing their client’s settlement proceeds to secure their future financial needs. Benefits of a structured settlement include:

  • Long-term security
  • Tax-free income
  • Low risk
  • Protection from economic uncertainty
  • No ongoing management fees
  • Flexible payment options to meet client’s current and future needs

Why a Settlement Planner is Necessary

When it comes to structured settlements and Medicare set aside allocation, you cannot afford to have a “leave well enough alone” mindset. These settlements are meant to ensure that your client is properly cared for financially for the remainder of their life. The decision to use a structured settlement must be made before finalizing your client’s settlement. If you feel that you are not sufficiently knowledgeable about MSAs consider bringing in the experts at Synergy Settlement Solutions to help you plan your client’s structured settlement and to guard yourself against malpractice exposure.

For more information or to schedule a consultation, please submit our contact request form or call (877) 242-0022.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.


“Synergy is our guiding light for deferring our contingent legal fees and planning for retirement. The lawyers at Panter Panter & Sampedro, myself included, have been working with them for over ten years using different methods to defer comp and plan for retirement.”

Brett Panter
Panter, Panter & Sampedro

"I don't think I've directly said "thank you" for helping us with Bridgett’s case. We sent the reduced payment to Medicaid and called Bridgett's mom to tell her approximately how much money was going to be left for Bridgett and she broke down over the telephone. Given only $25k of insurance and a $850k medical bill from the hospital she didn't think Bridgett would ever see a penny."

Tom L. Copeland
Jeffrey Meldon & Associates, P.A.

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Understanding Structured Settlements and Medicare Set-AsidesThird Thursday Webinar Series

The parties agree that a Medicare Set-Aside is needed, now what? In this month's webinar, presented by Synergy CEO, Jason D. Lazarus, you will learn about the process basics for setting up a set aside including MSA allocations, funding mechanisms for set-asides, post-settlement administration as well as an overview of the process to make sure you close the case compliantly.

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