Uninsured Employer, Workers’ Compensation/MSAs

Posted by John Cattie

Question:
Can an uninsured employer elect to just pay the injured employee’s palliative care/pain management on an ongoing basis and, therefore, avoid the hassles and expenses of setting up a MSA? Or is it required to do a MSA no matter what?

Employer in my case thinks that it can pay on an ongoing basis, but it doesn’t think that it can put together a large lump sum. Of course there is the question of whether the employer will always be around and solvent during the employee’s relatively long life expectancy. Please advise at your convenience.

-Indiana Attorney

Answer:
An uninsured employer can certainly choose to keep meds open and continue to pay those on an ongoing basis. If this is to happen, then an MSA would not be necessary as there would be no permanent burden shift of future care obligations to Medicare. I would be happy to elaborate further on a call if you wish.