Understanding Personal Injury Settlements and the Impact of Medicare Rules in 2026

Personal Injury Settlements

A personal injury settlement is a formal resolution reached between two or more parties engaged in a legal or civil dispute, often through negotiation. This is done without a judge and a trial, where you accept money in return for dropping the charges against the individuals who caused your injury. 

Types of Personal Injury Cases

A personal injury case is when one suffers harm caused by someone else’s negligence or wrongdoing. Listed below are some examples of the different types of personal injury cases: 

• Car accidents
• Motorcycle accidents
• Truck accidents
• Uber & Lyft accidents
• Pedestrian accidents
• Product liability
• Premises liability
• Slip & fall accidents
• Animal bites and attacks

Steps in the Personal Injury Settlement Process

The personal injury settlement process utilizes several key steps that steer parties from filing a claim to reaching a final agreement. 

1. Signing the release form
   1. When an individual has suffered injuries from being in an accident, a proposal will be made, and your lawyer will be in contact with the liable party’s insurance company. Furthermore, the lawyer will compose a release for the defendant, ultimately dismissing the defendant from any liability in exchange for a payment.
2. Issue a settlement check
   1. Your attorney will send the signed release form to the opposing party’s insurance company, which will then issue a settlement check.
3. The check is deposited
   1. Your personal injury lawyer will now deposit the settlement into the Interest on Lawyers’ Trust Accounts, which is for the client’s money. This account is only for approved financial institutions.
4. Medical bill negotiation
   1. Your lawyer can negotiate medical bills and treatments to ensure you receive the necessary care while also getting your settlement money.
5. The settlement is received
   1. The lawyer will provide a written invoice that includes the settlement amount, excluding liens and legal fees.

Personal Injury Settlements: Delays

Understanding what affects your settlement amount can help set realistic expectations and navigate your decision-making. These are some of the factors that can affect your settlement amounts: 

• Incomplete documentation: Missing or incomplete documentation will slow down the settlement process.
• Unclear liability: Any uncertainty about who is at fault for the accident will significantly impact the overall settlement process.
• Differing settlement amounts can lead to disagreements and delays.
• Legal challenges: These challenges could lead to court proceedings, causing a delay in the settlement process.
• Insurance company delays: This may happen from the liable party’s insurance company as a way to reduce the compensation the other party receives.

Factors That Affect Settlement Amounts

In addition to delays in settlements, various factors can affect the amount of compensation you receive.

• Severity of injuries caused
• Mental and emotional impact
• Duration of medical treatment
• Insurance coverage

An experienced personal injury attorney helps mitigate delays and ensures you receive the full compensation you deserve.

New Medicare Rules

As Medicare costs continue to rise annually, it is essential to understand how Medicare is evolving so that you receive the proper care and support. Here are a few new Medicare rules that will take effect in 2026:

• Medicare Prescription Payment Plan: The MPPP was first enabled for those with Medicare prescription drug coverage in 2025. As a result, it allowed individuals to spread the cost of their prescription drugs throughout the year instead of paying it all at once. Furthermore, starting in 2026, the plan will automatically re-enroll participants unless they choose to opt out.
• Cap on out-of-pocket prescription drug costs: In 2026, the cap on out-of-pocket prescription drug costs will increase by $100, to $2,100 from the initial $2,000.
• Insulin costs capped: In 2023, insulin costs were capped at $35 or less per month. Starting in 2026, Medicare will apply this cap on an annual basis. “This will be 25% of the maximum fair price for the covered insulin product under the Medicare Drug Price Negotiation Program and 25% of the negotiated price of the covered insulin product under the stand-alone Medicare prescription drug plan.”

Overlap: Personal Injury Settlements and New Medicare Rules

Understanding where personal injury settlements and new Medicare rules intersect is crucial to ensuring you receive the compensation you deserve. While an injury settlement won’t affect Medicare benefits, it does entitle Medicare to a portion of the compensation for the medical care the individual is to receive. Lastly, working with an experienced attorney can help you navigate these complexities and protect your rights.

How KAASS LAW Can Help

At KAASS LAW, our experienced personal injury attorneys navigate both settlement negotiations and Medicare regulations. We will maximize your compensation, protect your rights, and give you the justice you deserve. Additionally, we will provide you with the confidence you need to navigate the legal process throughout every stage. Ultimately, our goal is to achieve the best possible outcome for you, enabling you to have peace of mind. 

Conclusion

Understanding personal injury settlements and Medicare rules is crucial to protecting your rights. With adequate and professional legal guidance, you can smoothly navigate the settlement process. Moreover, our attorneys will do their best to get you the justice you deserve. Contact KAASS LAW today for a confidential consultation.