When I did worker’s comp defense in Virginia, we had this terrible boogeyman in the woods called the “Medicare set-aside”. It was basically a document where the insurance company screamed that it was NOT shifting costs for future medical care to the federal government while settling a worker’s comp case full and final. And the claimant had to swear up and down that he understood that.

Whole industries have sprung up around this business. But I wonder how easily any of this can be demarcated: a back treatment 10 years after the fact — related to the original accident or not? I guess the threat of Medicare coming after you is enough.

And I’m pretty sure the feds would pursue AIG before pursuing the little worker (or plaintiff, now that they’re doing liability).