When first initiated into Medicare’s complex and sectionalized process, people will typically have a lot of questions. The number one question asked by our readers is, “Can I spend my Medicare Set Aside money?” The short answer is Yes. This money belongs to you and not to Medicare. It is yours. It is money that was afforded to you by your settlement, and thus, it is your asset.
Set Aside money is money that protects Medicare’s interests. In the future, Medicare wants the money to be saved and used for Medical bills, since they would normally be paying your medical bills. Medicare will still cover illnesses and non-work injuries, but work injury compensation for time off, medical expenses, etc. is at the cost of the employee and the employer.
If you plan on using your Medicare Set Aside for something other than future Medical expenses, Medicare will refuse to cover your medical bills for your injury and all related injuries. While the Set Aside money is supposed to be used for one purpose, it is understandable that many people will have to take out and use the money for current expenses. Rent, car insurance, and groceries are examples of everyday expenses that the money can be used for, though you could use the money for just about anything. It belongs to you, and so it is up to you how to use it. Before you ask yourself “Can I spend my medicare set aside money?”, you should probably first ask, “Should I save up this money for future medical expenses?” That would be a much wiser choice.