Lien Resolution Services is continuing to follow this story. Updates will be made as they become available.
The Department of Health and Human Services (HHS), Center for Medicare and Medicaid Services (CMS), and Medicare Secondary Payer Recovery Contractor (MSPRC) have announced a one year delay in implementation on Section 111 reporting requirements for claims involving liability insurance, retroactive to October 1, 2010 through October 1, 2011.
This means that defendants need not report settlement of cases settled before October 1, 2011. The announcement marks the third delay of Section 111 implementation. As of November 15, 2010 at 12:45 Eastern Standard Time, no announcement is posted on the MSPRC website.
The American Association for Justice has noted the delay should facilitate settlements and allow for faster resolution of certain cases. They further “believe that during this period, CMS will suspend the issuance of MSP guidance documents, which have often been contradictory and a source of confusion.”
What Does the Moratorium Mean?
The AAJ has it right – settlements should go more smoothly. But remember, this does not change the obligations of a plaintiff or plaintiff’s attorney. You still must inform the MSPRC of the case. It will still issue a Medicare Lien. And the Medicare Lien must be paid from any settlement proceeds.
Keep in mind that defendants may still voluntarily report the case to CMS. Many have begun collecting information on each plaintiff to query the Medicare system. Cooperation between parties should be continued to facilitate settlement. Plaintiffs: Defendants cannot properly investigate your claims without knowledge of a lien – why keep that information from them? Both sides can continue to work together to minimize liens by sharing ICD-9 codes and Medicare Lien numbers.
Finally, it is clear that Medicare’s agents (CMS, COBC, MSPRC) are not prepared for the influx of information that Section 111 of the MMSEA will bring. This is the third push back of implementation. Medicare’s agents are already experiencing extreme delays (four months or more) without Section 111.www.lienresolutionusa.com https://lienblog.wordpress.com firstname.lastname@example.org