New SITF Settlement Policy for Claims With MSA Trusts

By Alissa Atkins

The Georgia Subsequent Injury Trust Fund (SITF) recently instituted a new policy pertaining to the settlement of SITF claims in cases requiring Medicare Set-Aside (MSA) trusts. A copy of this policy can be read here: http://www.davidandrosetti.com/newsletter/pdf/SITF.pdf

In short, the SITF has made changes in its business model pertaining to MSAs. Specifically, the SITF has now placed a cap on reimbursing MSA money as part of a workers’ compensation structured settlement. If the annuity quote including seed money is more than $150,000.00, the SITF will not reimburse any amount over $150,000.00 for the MSA. The SITF settlement manager suggests that in some cases the employer/insurer consider contributing the balance above the $150,000.00 threshold “if you have a case that is really one that needs to be settled.” Otherwise, the SITF recommends considering bifurcating settlements, and settling the indemnity portion of the claim while reassessing the medical component of the claim at a later time.

If you have questions or comments, please reply to this blog post or contact your David & Rosetti attorney at 404-446-4488 or by visiting our website at www.davidandrosetti.com. Nothing contained in this blog should be construed as legal advice or opinion on specific facts. For editorial comments or suggestions, please contact David W. Willis at (404) 446-4491 or at david.willis@davidandrosetti.com.