Are Medicare recovery demand payments tax deductible as a medical expense? Yes or No what is the logic?
I am referring to payments to CMS Benefits Coordination and Recovery Center (BCRC) from insurance or injury lawsuit settlement proceeds for medical care payment already made to providers by Medicare. Medicare provider benefits are conditional meaning they are subject to recovery. The specific case is a demand payment for a share of a uninsured motorist coverage claim. I now understand that Medicare is automatically notified of liability insurance payment similar to how injury lawyers are required to notify Medicare of a case.