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Medicare Secondary Payer Act to be Enhanced? Don’t Bet On It

The Medicare Secondary Payer Act (“MSPA”) was enacted in 1980.  Until 2007, it was a virtual ghost.  Many attorneys involved in personal injury cases either ignored the law or were unaware of it.  But Section 111 of the Medicare, Medicaid, and SCHIP Extension Act (“MMSEA”) of 2007 changed all that.  So long as you haven’t been living in a hole for the past three years, you know about Section 111 (If you don’t know, click the link for your Medicare obligations).

The MMSEA is fraught with problems.  As a plaintiff’s attorney, you are burdened with lien resolution and attorney liability for double damages plus interest.  Defense attorneys, as counsel to Responsible Reporting Entities (“RREs”) are burdened with fears of $1,000 per day penalties, double damages, and interest.  Meanwhile, Medicare procedures and MSPRC timelines are increasing every few months (in August a Conditional Payment Letter would come in 30-45 days, in November it would be 65 days, and since late January you wait 65 days after you receive a “Rights and Responsibilities Letter”).

The good news is that the Medicare Advocacy Recovery Coalition (“MARC”) is fighting for administrative and procedural changes to expedite lien resolution.  The bad news?  The bi-partisan bill proposed by Patrick J. Murphy (Democratic Representative in Pennsylvania), and supported by Tim Murphy (Republican Representative in Pennsylvania) cannot solve everything.  H.R. 4796, or, the “Medicare Secondary Payer Enhancement Act” is far from perfect – and it may even extend the timeframe of Medicare lien resolution

Lien Resolution Services will provide analysis of the proposal on this blog, next week.

Ryan Weiner
Co-Founder Lien Resolution Services
This Blog/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

About Ryan J. Weiner

Co-Founder of Lien Resolution Services, LLC, a national healthcare lien resolution firm. Our goal is to assist in the fair administration and resolution of healthcare liens on personal injury cases. Please visit our website for more information: www.lienresolutionusa.com.

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