Can I Keep My Personal Injury Settlement if Medicare Paid For My Care? 

 Posted on October 30, 2025 in Medicare Repayment

When you are injured in an accident and receive medical treatment covered by Medicare, you may be surprised to learn that the federal government could ask you to pay that money back. This is because Medicare has the right to seek reimbursement for any expenses it paid.

This issue is common from California to New York. Many older adults rely on Medicare for medical care, but few understand how it affects personal injury settlements.

The process of repaying Medicare is called a Medicare lien or Medicare demand. If you do not handle it correctly, you could face serious legal penalties. Our team of nationwide Medicare payback attorneys can step in and start handling your case right away. Call us at 630-310-1267 to talk for free. 

What Is a Medicare Lien?

A Medicare lien is the federal government’s right to be reimbursed when it pays for medical treatment that someone else is legally responsible for covering. In personal injury cases, this would be the driver who caused your car accident or the business responsible for your slip and fall.

This rule comes from the Medicare Secondary Payer Act (42 U.S.C. § 1395y(b)). Under this law, Medicare is considered a "secondary payer" when another party should be paying for your medical bills. If Medicare covers those costs first, it must later be repaid from your settlement or court award.

How Does Medicare Know About My Settlement?

When you file a personal injury claim, federal law requires the insurance company or other responsible payer to report the case to Medicare. Medicare tracks the medical expenses it covers that may relate to your injury. Then it issues a Conditional Payment Letter, which is a statement showing what it says you owe.

How Does a Medicare Demand Letter Work?

Once your case settles, Medicare issues a final demand letter with the amount it must be repaid. Payment is typically due within 60 days. If the debt is not paid in time, interest begins to add up.

The letter will include:

• A detailed list of the medical services Medicare paid for

• The total repayment amount

• Instructions for how to send payment or request a review

Your attorney should carefully review this letter to make sure Medicare is not claiming reimbursement for unrelated treatments. Mistakes are common, especially if you received medical care for other health conditions during the same time.

What Happens if I Ignore the Medicare Lien?

Ignoring Medicare’s lien can have serious consequences. The government can sue you for double the amount owed, and it can even go after your lawyer or the insurance company that issued your settlement check. In some cases, Medicare can withhold future benefits until the debt is paid.

Handling the lien correctly will make sure you keep as much of your settlement as possible while staying in compliance with federal law. There is no need to be afraid of dealing with the government; our Medicare demand letter attorneys are here to help. 

Call a Medicare Repayment Attorney Today

If Medicare paid for your medical care after an accident, you risk losing part of your settlement or facing penalties. The Medicare payback notice attorneys at The Law Offices of Joseph J. Bogdan, Inc. handle Medicare lien and demand letter cases nationwide, including in Arizona, Florida, and California.

Our team reviews every case carefully and negotiates directly with Medicare so you can keep as much of your settlement as possible. We offer free consultations. We can start working on your case right away. 

Call us at 630-310-1267 to schedule your free consultation.