The mandatory reporting date of the Medicare Secondary Payer Act (”MSP”) has been extended another six months to January 1, 2010. Previously only enforced in workers’ compensation matters, the Medicare Medicaid and SCHIP Extension Act of 2007 broadened its reporting requirements to include payments (settlements or judgments) made by anyone to certain claimants.
For those unfamiliar with the MSP, the act is designed to prevent burdening Medicare and Medicaid with the cost of treating injured people who collect damages for their injuries. If a claimant collects damages, neither Medicare nor Medicaid will be the primary payer for treatment of those injuries. When settling a case or paying a judgment, a “Final Settlement Document” must be submitted to Medicare. The process includes satisfying any outstanding Medicare liens, and may also require establishing a Medicare Set-Aside Allocation (”MSA”), an approved amount set aside to fund the cost of any future treatment for the injuries sustained by the claimant.
Insurance carriers will likely have studied these issues and understand the complicated procedure which will shield them from penalties and other liabilities which could befall them in the future for failure to comply with the MSP. Many motor carriers may not have the same resources. Before you pay, make sure you satisfy all of the MSP requirements.
For those unfamiliar with the MSP, the act is designed to prevent burdening Medicare and Medicaid with the cost of treating injured people who collect damages for their injuries. If a claimant collects damages, neither Medicare nor Medicaid will be the primary payer for treatment of those injuries. When settling a case or paying a judgment, a “Final Settlement Document” must be submitted to Medicare. The process includes satisfying any outstanding Medicare liens, and may also require establishing a Medicare Set-Aside Allocation (”MSA”), an approved amount set aside to fund the cost of any future treatment for the injuries sustained by the claimant.
Insurance carriers will likely have studied these issues and understand the complicated procedure which will shield them from penalties and other liabilities which could befall them in the future for failure to comply with the MSP. Many motor carriers may not have the same resources. Before you pay, make sure you satisfy all of the MSP requirements.
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