Medicare Compensation Recovery

Paying back care costs

When your claim reaches settlement or judgment and is more than $5,000 including legal costs, you must repay all care costs relating to your injury or illness.

Care costs include:

  • nursing home benefits,
  • residential care subsidies, and
  • home care subsidies

You must tell us if these care costs relate to your compensation claim. We’ll send a declaration form with your Medicare history statement.

You must tell us on the declaration:

  • if you used a nursing home, residential care, or received home care for your injury or illness, and
  • the name of the care facility


If you disagree with the care costs amount on your notice of past benefits, you can ask for a review by writing to the Medicare Compensation recovery team.

Your doctor may need to give evidence that:

  • the care costs don’t relate to your compensation, or
  • only a percentage of care costs relates to your injury or illness

Page last updated: 12 May 2018