Settlement threatening benefits?
September 15, 2009 2:00 PM Subscribe
Will a class-action settlement affect Medi-Care/Medicaid benefits?
posted by sonicbloom to Work & Money (2 answers total)
My g/f is a conservator of her son, who has bi-polar disorder and is currently in a health care facility. He was prescribed Zyprexa in 1999, and is now being represented in a class-action lawsuit (due to contracting diabetes, which he got over recently). The law firm has settled with Lilly for an amount between $10 - $15 k per case.
He is on SS disablility and SSI (supplemental) income, which pays the shared cost of his facility costs, most of which are borne by Medical/Medicare. The amount is about $6k by medical/medicare, and $600 from him, which is pretty much his whole SS disability check.
We were wondering if getting the settlement amount in full would make him ineligible for Medical/Medicare. We know his SS disability is safe and that his SSI would probably be lost. No big deal, as the SSI is probably less than a hundred bucks.
There is also the option of getting a structured payment, which may help us retain the medical benefits. Also there is the option of creating a trust, but we don't have much knowledge of what is needed.
Would a structured payment be safe? Do you have any advice, experience, or tips?