Most elder law attorneys are already aware that Medicare parts A and B, commonly known as Traditional Medicare, is a federal program that provides health insurance coverage to people 65 and over, as well as people diagnosed with end-stage renal disease or Lou Gehrig’s disease. Attorneys entering into third party liability settlements on behalf of their clients, may not be aware that such settlements are subject to the statutory mandate that Medicare be reimbursed, or of the penalties imposed for non-compliance. Where does Medicare’s right of recovery come from and, more importantly, what are the penalties for non-compliance?
