Legal Question in Insurance Law in Arizona
are accident settlements sharable with medicare
I was injured in an accident in a medical care program. Fault has been acknowledge by the program. Medical bills to date for injury sustained have been paid by medicare. Medicare was paying for the program.
Questions: Does medicare get reimbursement for expenses they've paid or may pay for the injury sustained from any award settlement I may receive?
Are award settlements taxable income for IRS 1040 tax returns?
Thank you.
1 Answer from Attorneys
Re: accident settlements / medicare
Medicare has a lien on the settlement proceeds to the extent of the medical payments they made. Settlements for compensatory damages for personal injury are not taxable.
Daniel Press
Chung & Press, P.C.
6723 Whittier Ave., Suite 302
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