How does a lawsuit settlement affect Medicare and Medicaid Snap STAR Plus Program an RSDI? - AgingCare.com

How does a lawsuit settlement affect Medicare and Medicaid Snap STAR Plus Program an RSDI?

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When $ received is when it becomes income.
If you have concerns regarding the settlement, you should contact your atty.

For example, Deepwater Horizon (BP oil spill) was April, 2010.
The final round of settlements were paid in 2016. Over 5 years from event. In order to get the $, your name & tax ID had to be on file. & a 1099 got issued this Jan 2017 as its reported taxable income for 2016 taxes.

$ paid will have a paper trail. It will eventually surface as incomeReally if your worried about all this, contact your atty who did lawsuit for you.
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Thank you. What if it is from 2005 I wasn't on assistance them. ???? Does time play a factor ????
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By RSDI, I'm assuming you mean a monthly SS check?

If so, then you are getting Medicare, medicaid, food stamps and have a monthly SS check. Any lawsuit settlement usually means you will be getting $$ as the settlement. But IF Medicare (& in some states Medicaid too) paid for any costs of the care you received as a result of the incident that led to the lawsuit, then the M&Ms can require a repayment of all costs paid from the settlement funds.

It's referred to as the Medicare Secondary Payor Act. If your states Medicaid program did one, it would be a separate law or administrative order.

For a lawsuit, a good tort atty would establish an escrow-like account for settlement funds to go into (less fees & other court / legal costs) and from that account secondary's get paid. Whatever the final $ is the settlement to you. It is income. So if your on income based entitlements (medicaid) or programs (SNAP), then the settlement $ will more than likely take you over the income ceiling. So you become ineligible till you are very poor again. Settlement is reportable btw.
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