Medicare’s interests must be protected when negotiating settlements in worker’s compensation claims. This includes scenarios where the settlement also resolves the defendant’s obligation to pay future medical benefits, such as with a full Compromise and Release Agreement in Pennsylvania or a Section 20 settlement in New Jersey.

On August 22, 2024, Acting New Jersey Governor Nicholas Scutari signed legislation amending the existing N.J.S.A. 34:15-64 to increase the cap on attorneys’ fees from 20% to 25% of the settlement award. This amendment was effective immediately.