What is the procedure for calculating life expectancies for MSAs?
The Centers for Medicare & Medicaid Services (“CMS”) recently announced a new procedure regarding how life expectancies for Medicare Set-aside Arrangement (“MSA”) purposes should be calculated. As of April 12, 2010, CMS will begin referencing the 2005 United States Life Tables recently published by the Centers for Disease Control (“CDC”) for Workers’ Compensation (“WC”) MSA calculations.
Practically speaking, the settlement community should begin referring to the CDC’s Table 1: Life Table for the total population, United States, when calculating a claimant’s life expectancy for MSA purposes. CMS will be applying this table for WCMSA proposals received on or after April 12, 2010 as well as any WCMSA case reopened on or after April 12, 2010.
GFRG will continue to monitor CMS communications and provide new information to the settlement community as it becomes available. To view the CMS announcement in its entirety, click here