Unused Medicare Set-Aside (MSA) funds remain in the MSA account and are carried over to subsequent years. These funds are reserved to cover medical treatment related to the claimant's workers’ compensation claim which Medicare would otherwise cover.
Carrying Forward Unused MSA Funds
According to the Centers for Medicare & Medicaid Services Self Administration Toolkit, if any funds are left over at the end of a year, they do not vanish. These remaining funds carry over to the next year, allowing usage of both the new annual deposit and the previous year's leftover amount. This continuous rollover ensures that all accumulated funds are used appropriately.
Post-Claimant Death Fund Management
In the event of the claimant's passing, if unused MSA funds remain, CMS may require reimbursement for any outstanding covered medical expenses. Medical providers have up to 12 months from the date of service to bill. Once all obligations to Medicare are cleared, the remaining MSA funds can be disbursed according to state law and the specific settlement agreement, potentially holding the account open for a period post-death.
For more detailed guidance, please refer to the Workers’ Compensation Medicare Set-Aside Reference Guide, v3.1 and the Self Administration Toolkit, v1.3. These resources cover comprehensive information on managing MSA accounts and handling funds responsibly.
