Education
Medicare Set-Aside (MSA) and Pre-Settlement Funding
• 2 min read
MSAs can delay settlement payment and reduce net recovery. Funding helps bridge the MSA review period.
Medicare Set-Asides allocate a portion of the settlement to cover future Medicare-related medical care. They're commonly required on workers' compensation settlements over $25,000 and increasingly relevant on liability settlements.
MSA review by CMS can take months and may require revision before approval. Settlement payment is typically delayed until MSA documentation is in place.
Pre-settlement funding can extend through MSA review periods. Cases nearing settlement but stuck in MSA limbo are good candidates for bridging funding.
Post-settlement funding is also available to bridge the final wait between MSA approval and check disbursement.
Your attorney can explain whether your case requires an MSA. AARC's underwriting accounts for MSA delays in timing.
Call (800) 297-3834 about MSA-related funding options.
Frequently asked questions
- Will taking an advance reduce my settlement?
- The advance plus its flat fee is repaid out of the settlement, so your net proceeds are reduced by that amount. It does not affect the gross value your attorney negotiates.
- Is a pre-settlement cash advance a loan?
- No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.
- Do I need good credit or a job to qualify?
- No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.
- How fast can I get funded?
- Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.
- How much does it cost?
- AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.
About the author
Written by the funding team at AARC — Accident Advance & Resource Center. AARC underwrites pre-settlement cash advances for personal injury claimants and works directly with plaintiff attorneys across 45 states. Our team reviews case documentation daily and writes from that firsthand experience.
This article is general information, not legal or financial advice. Always confirm details with your attorney. Contact AARC or call (800) 297-3834 with questions about your specific case.
