Purpose and Coverage
While both MCPs and MSAs involve funding for medical expenses, their purposes differ. An MSA is specifically for Medicare-covered services related to a particular injury. In contrast, an MCP is assigned for medical expenses that Medicare does not cover or that are unrelated to the injury.
Flexibility and Management
MCPs, sometimes known as "Non-Qualified" medical expense accounts or Medical Custodial Accounts when managed by professional administrators, offer more flexibility. They do not have Medicare reporting requirements and can cover a wider range of treatments.
Post-Exhaustion Payment
One key distinction is what happens when funds run out. With an MCP, if funds are depleted, Medicare does not automatically step in to cover expenses, unlike with an MSA.
Final Thoughts on Medical Cost Projections
For those settling claims that require prediction of future medical expenses beyond standard Medicare coverage, considering a Medical Cost Projection can be beneficial. MCP accounts are advantageous for their flexibility and ability to manage non-Medicare eligible medical costs. For more complex details, refer to specialized legal or financial professionals.
For further understanding, it may be helpful to consult additional resources or legal professionals regarding MCP specifics and implications in settlement agreements.
