If you were just injured in an accident that was caused by someone else’s negligence, you might be concerned about how any settlement you receive might affect your government benefits, such as SSI or Medicaid. This important concept is crucial to your San Antonio auto wreck case, so you should carefully consider the potential implications and the ways you can minimize the impact of your award on your government benefits.
How Personal Injury Settlements Can Affect Government Benefits
Personal injury settlements in San Antonio can affect government benefits in several ways, including the following:
Personal Injury Settlements Can Push Your Financial Resources Above Eligibility Thresholds
SSI and Medicaid are needs-based programs. Federal rules set upper limits on how much income or assets a claimant can have. If they go beyond these thresholds, they can lose benefits for the month or even permanently. The asset cap for SSI is $2,000 per individual or $3,000 per couple. The Medicaid asset limit is $2,000 for aged or disabled adults. When a recipient exceeds this threshold or has unexcluded income that exceeds the income threshold, the recipient does not receive these government benefits until their assets fall below this amount again.
Claimants Can Be Subject to Retroactive Reporting
If an SSI or Medicaid claimant did not report the personal injury proceeds when they were required to, they can be subject to retroactive reporting and overpayment obligations.
You May Have Medical Liens
If you used your Medicaid insurance to pay for your treatment after a personal injury, Medicaid may be entitled to reimbursement through a medical lien. Before you receive your personal injury proceeds, Medicaid may be repaid for the medical bills they paid on your behalf. This can reduce the amount of your personal injury settlement.
You May Be Subject to a Medicare Set-Aside
Medicare set-asides are a portion of a settlement that is reserved for future medical expenses related to your injury and typically covered by Medicare. This means a portion of your settlement can be put aside to help pay for future medical treatments.
Ways to Minimize the Impact of Personal Injury Settlements on Government Benefits
Fortunately, there are a few options to help avoid the potential of losing all or part of your government benefits, such as:
- Structured settlements: Structured settlements can divide your award into a series of ongoing payments, rather than providing your settlement in a lump sum. This could help if you reduce the amount of your monthly payments to be below the relevant threshold for your government program.
- ABLE accounts: ABLE accounts are tax-advantaged savings accounts for people with disabilities, allowing up to $17,000 in annual contributions.
- Special needs trusts: Special-needs trusts hold trust funds for the injured individual for specified expenses without interfering with their receipt of government benefits. This allows the injured individual to access treatments and services they may not otherwise be able to without having to worry about the funds being counted against their resource limits.
- Spend-down plans: Making timely investments in exempt goods and services, such as disability accommodations to a home or medical care, may help reduce countable resources.
Proactive negotiation can help you minimize the risk of losing your government benefits. A seasoned negotiator from our firm can help.
Contact Us to Learn More About Protecting Your Government Benefits
At George Salinas Injury Lawyers, we want any settlement proceeds you receive to help improve your quality of life, not jeopardize your benefits. Contact us today to begin devising a plan to protect your financial future.