Hurray! I am SO thrilled for you and your hubby, Butterfly! First of all, he will receive a lump sum payment going all the way back to when he first applied. That will be a nice little nest egg. Did you have a lawyer? If so, he will get 25% of that lump sum off the top. If not, it's all yours and is not taxed. Secondly, since the usual wait for Medicare is 2 years, and it's been 2 1/2...yes, he WILL get Medicare. In fact, it will be retroactive to the time he applied for disability. That doesn't mean much if you've already paid bills with another insurance, but possibly you may get a refund from Medicare if you paid bills out of pocket. Not sure about that. Plan wisely. I suggest you put some in a CD with a good rate of return, and some in savings. Use the rest to pay bills, buy things you need, etc. I used $5,000 of mine to pay off a credit card. I also got a 6-month CD with 7 1/2% interest with part of my lump sum, and just let it keep rolling over. I finally cashed it in in April for my trip to NYC. I still have a separate savings account that is earmarked for cremation expenses.