If you’ve recently been in an accident in Pennsylvania or elsewhere, and you receive a settlement, it’s important to know how your healthcare benefits will be affected. Some health insurance companies will require that you pay to continue receiving benefits. Having adequate health insurance is often necessary after a serious accident if you need to visit the doctor or receive treatment consistently.
Medicare and accident settlements
If you’re receiving Medicare benefits, you may also qualify for Medicaid depending on your age. This would make you dually eligible since you’d be receiving benefits from both programs. You may have to pay Medicare once your personal injury settlement is awarded to continue receiving ongoing healthcare since the settlement funds technically count as income. However, most insurance settlements do not count as taxable income, but the nature of your settlement and any costs associated with the accident will show up on your tax return. The insurance company providing your settlement should be able to provide more information on payment terms. Don’t speak to an insurance company without your lawyer.
Settlement payments and financial assets
Even if your personal injury settlement is not taxable, receiving the money will affect the number of assets you now possess. Insurance plans like Medicaid have asset and income assessments to determine your eligibility so your settlement payments could make you ineligible for this type of health insurance. The timing of when you receive your settlement can also affect when and how long you can receive health insurance benefits. Refer to Pennsylvania Medicaid rules for more information.
If you’ve been injured in an accident and have received a personal injury settlement, it’s important to continue consulting with your lawyer to ensure you are clear on the terms of your settlement. Ask your attorney whether you’re required to pay your insurance company to ensure you have adequate coverage, especially while you’re recovering from an accident.