Settlement question/advice (time sensitive)

[PIQuest]

What is the name of your state? Minnesota

A family member was injured and won a settlement from the company responsible for the injury. As a result, this family member suffered numerous medical problems and needed lengthy hospitalization and medical care. The settlement is to be divided between her attorney, medica, medicare (for medical expenses they paid and need reimbursed), and the family member. Apparently medica has compromised and has agreed to what the lawyer offered them to pay off the bills. Medicare has not yet settled and has given the attorney the run-around about settling, telling him they had 45 days to make an offer, then saying they were no longer able to make an offer and he had to wait 20 more days. Now they've passed the issue to a regional office, who has yet to make a compromise of costs and who has given no indication of when they will make a decision by.

The family member needs the money and the attorney said that by tomorrow he is going, if the family member agrees, take his money, give the family member thier money, pay media, and put the proposed compromise offer amount for medicare in an interest bearing escrow account. The family member could keep the interest, but not the original amount. Then if medicare compromises, the family member can pay them with that money.

The problem with that is if medicare does not compromise and they go after the family member. The family member doesn't have any assets, and most of the settlement money is going to pay off debts that resulted from the accident. My concern is that once the lawyer does this, the family member will be left high and dry if and when medicare goes after them for a settlement. If the family member does not go for this, then the attorney, I presume, would still be involved under the original agreement and would have to negotiate the deal with medicare.

Any advice on what the best route to go is? Is the attorney looking to take his loot and hit the bricks, or is this the best plan for the family member?

Any advice or suggestions are appreciated. The lawyer needs an answer by Friday March 14, so anything you have to offer would be great.

[ecmst12]

Sounds like a bad idea to me. Medicare is a government agency and moves slowly. They are also disinclined to accept a lesser amount then what they actually paid, since they already pay a very low rate to their doctors.