The rumor mill is spinning that effective July 1, 2009, Medicare Set-Aside (MSA) trusts are required for liability litigation as is already required in worker’s compensation. (Reimbursement by a plaintiff for previously paid benefits to Medicare is unchanged by the new law.) Although federal research is not my strong suit, I can’t find any support for this proposition. My best guess is that this rumor started because of the new § 111 reporting requirements included in the Medicare, Medicaid & SCHIP Act of 2007. (Public Law 111-173). Section 111 provisions are reporting requirements and do not mention any need for MSAs in liability cases. This new law simply requires those paying for judgments to report to Medicare payments of settlements, awards, judgments, or other payments. An argument is being posited that the previous law still in effect already requires MSAs in personal-injury cases for future medical expenses. (Medicare Secondary Payer Act). I cannot find any clear authority supporting that proposition.