What Happens to Medicare’s Interest If Your Client Dies?

If you are representing a Medicare beneficiary who dies, you or your client’s loved ones may be wondering if a Medicare lien is still valid. It’s important to understand that Medicare’s interest is still a priority even after a recipient’s death. This article is a brief guide for handling the Medicare matters of a deceased beneficiary. The Medicare Secondary Payer (MSP) Manual is an excellent resource for following all Medicare guidelines. For expert Medicare lien resolution, consider partnering with Synergy Settlement Solutions.

Medicare’s Interest

The death of your client does not void the legal responsibility to repay Medicare for payments made on behalf of your client. By law, your client’s estate is subject to collection proceedings and the executor of the estate is required to handle all of the deceased’s business and financial matters. If Medicare has a lien that has not been satisfied, a claim can be asserted against your client’s estate.

If Medicare Claim Has Not Been Satisfied

Typically, Medicare liens should be handled before any settlement proceeds reach an estate. However, in the event that settlement proceeds are distributed to the estate, the liens must but satisfied promptly. The executor of the state will receive dated copies of Medicare correspondence as well as exhibits such as the Standard Recovery/Initial Determination Letter that was sent to the beneficiary. The executor will receive instructions to ensure that the Medicare claim is satisfied before the estate is settled.

Proof of Representation

Attorneys must provide proof of representation to the Benefits Coordination & Recovery Center (BCRC) in order to receive information on behalf of their Medicare beneficiary client. In the case of a deceased Medicare recipient, new proof of representation must be submitted if the Medicare Secondary Payer recovery claim has not been reached. If your client did not have a will or formal estate, documents must be signed by an individual who is entitled under state law to pursue applicable claims.

Medicare affects many Americans, and resolving a Medicare lien has become more complex. If you need help with lien resolution, including Medicare liens and Medicaid liens, it is best to work with a lien resolution service provider, such as Synergy Settlement Solutions.

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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

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