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MEDICAID & SCHIP EXTENSION ACT OF 2007 (MMSEA)

MEDICAID & SCHIP EXTENSION ACT OF 2007 (MMSEA). HISTORY OF MSP. Old Statute – New Teeth Medicare first enacted 1965 1965 – Medicare was the primary payer for medical even when medical services were covered by other insurance. HISTORY OF MSP.

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MEDICAID & SCHIP EXTENSION ACT OF 2007 (MMSEA)

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  1. MEDICAID & SCHIP EXTENSION ACT OF 2007 (MMSEA)

  2. HISTORY OF MSP Old Statute – New Teeth Medicare first enacted 1965 1965 – Medicare was the primary payer for medical even when medical services were covered by other insurance

  3. HISTORY OF MSP • In 1980 – Congress enacted Medicare Secondary Payer (MSP) Legislation • Required Medicare to serve as secondary payer when beneficiary has overlapping coverage • MSP – Medicare will conditionally pay for beneficiary's medical expenses and may then seek reimbursement from primary plan • Primary plans include group health plans, liability, worker’s compensation, automobile or no fault

  4. December 2007, the Medicare, Medicaid & SCHIP Extension Act (Extension Act) of 2007was signed into law

  5. The Extension Act creates enhanced reporting requirements, not new ones

  6. Section 111 of the Extension Act adds new mandatory reporting obligations to the MSP (Medicare Secondary Payer Act)

  7. HISTORY OF MSP • 4 Step Process: • Identification • Notification • Reimbursement • Reporting

  8. Road Map for MMSEA Section 111 Identification: Is the Claimant entitled to Medicare benefits? Notification: Medicare – we have a claim.

  9. Road Map for MMSEA Section 111 • Reimbursement: How much does Medicare get paid back? • Reporting: We have settlement or judgment – now what?

  10. IDENTIFICATION – WHO IS ELIGIBLE?

  11. Who Must Protect Medicare Rights? • Plaintiff • Plaintiff attorney • Defendant • Defense attorney • RRE • “Any Entity” involved in the settlement conclusion of the claim is obligated to protect Medicare's interest

  12. MMSEA Applies to Primary Payers Primary Payers “any entity that is or was required or responsible to make payment with respect to an item or service (or any portion thereof) under a primary plan.”

  13. Who Must Contact Medicare? Primary Payer = Responsible Reporting Entity (RRE) Liability Insurance Plan No Fault Insurer Workers Compensation Plan Self-Insurers Third-Party Administrators Group Health Plans

  14. Medicare Priority Right of Reimbursement • Not Ordinary Lien

  15. MSP gives Medicare Direct Right of Action to recover Conditional Payments from any entity who received a primary payment • Medicare beneficiaries • Attorneys • Physicians & Medical Providers • Suppliers • State Agencies • Private Insurers

  16. IDENTIFICATION HOW TO HOW TO ACQUIRE THE NECESSARY INFORMATION AUTHORIZATION FOR RELEASE OF RECORDS DISCOVERY REQUESTS

  17. Ways to ensure compliance: Adjuster: • Advise of Medicare Obligations at onset of claim • Obtain CMS Release & HIPPA Release from Claimant / Insured • Send in CMS Release • Ensure Query system has been used

  18. IDENTIFICATION CMS QUERY SYSTEM Method by which RRE’s can determine claimant’s Medicare entitlement status RRE submits claimant’s name, SSN, date of birth & gender Confirms entitlement status only – not dates or basis of entitlement Written verification of entitlement status provided Submission of query alone does not satisfy reporting requirements

  19. Identification When Query System and Authorization are utilized, notification (not reporting) obligation is satisfied. are utilized, notification obligation is satisfied.

  20. CMS QUERY SYSTEM RREs can Query 1 x Month Each Query can have Multiple Claimants Query as close to settlement as possible Identification

  21. Mail Consent to Release to MSPRC at: MSPRC Auto/Liability [check address as it changes] P.O. Box 33828 Detroit, MI 48232-0998 Fax: (734) 957-0998 *Note: CMS will combine its Medicare secondary payer recovery contractor (MSPRC) and coordination of benefits contractor (COBC) contracts into a centralized contract called the Medicare Secondary Payer Integration Contractor (MSPIC). Notification

  22. Send authorization as soon as claim is made Identification

  23. Ways to ensure compliance: Attorneys: Pleadings: Brief Statement Rule 62 Summary Statement 2. Discovery: Requests for Production Interrogatories Requests for Admission Depositions

  24. Identification Insurer (RRE) no longer has to rely on opposing counsel to determine claimant/plaintiff’s Medicare status Insurer (RRE) is now directly responsible for determining Medicare eligibility status by submitting inquiry to CMS

  25. What happens next? COBC opens a potential recovery case and refers matter to second contractor – the MSP Recovery Contractor (MSPRC) CMS will issue “Rights and Responsibilities Letter” to claimant & his/her counsel

  26. Reimbursement How Much Does Medicare Get Paid Back? Medicare sends Conditional Payment Letter (CPL) or Conditional Payment Notice (CPN) within 65 days. This is the Initial Demand

  27. Reimbursement What is a conditional payment? • A conditional payment is a payment that Medicare makes for services where another payer may be responsible. The payment is “conditional” because it must be repaid to Medicare when a settlement, judgment, award or other payment is secured.

  28. Reimbursement Conditional Payment Letter • An initial Conditional Payment Letter will be generated automatically within 65 days of the issuance of the “Rights and Responsibilities Letter”. • Conditional Payment Letters will go to all authorized parties. • Additional requests for Conditional Payment Letters will not speed up the process.

  29. September 30, 2011: Self-service information feature added to MSPRC’s customer service line. To call, you need: (1) Case identification number found on all MSPRC correspondence. (2) Beneficiary’s date of birth. (3) First five letters of the beneficiary’s last name as it appears on their Medicare card. (4) Last four digits of beneficiary’s Social Security number or full Medicare number.

  30. Reimbursement What’s a CPN? A CPN is issued in lieu of Conditional Payment Letter (CPL) in certain circumstances when a settlement, judgment, award or other payment has already occurred. 1. If the MSPRC is notified of a settlement, judgment, award, or other payment through Section 111 reporting rather than from the beneficiary or their representative. 2. If the MSPRC has been alerted to a settlement, judgment, award, or other payment AFTER settlement has been reached.

  31. Reimbursement NEGOTIATING THE LIEN: Identify unrelated treatment (ICD9 Codes) Provide IME Reports Procurement Cost Hardship Waiver Financial Hardship Against Equity and Good Conscience Waiver of Rights

  32. Reimbursement REDUCTIONS BASED ON: • Procurement Cost • Hardship Waiver • Financial Hardship • Against Equity and Good Conscience • Court Order on the merits which designates amounts not related to medical expenses

  33. Self-Calculation Option • Physical trauma based injury. • Settlement does not relate to ingestion, exposure, or a medical implant. • Settlement is expected to be and ultimately or  • Date of incident must be at least before submission. • Beneficiary must to appeal but retains the right to pursue waiver. • Causally-related medical and no further treatment is expected, supported by either: •  Make highlights stand out is $25,000 less six months give up the right treatment is complete

  34. Self-Calculation Option • A written physician attestation, OR • A written certification provided by the beneficiary that: • No medical treatment related to the case has occurred for at least 90 days prior to submitting the self-calculated final conditional payment amount to Medicare, AND • There is no causally-related future care expected.

  35. New Fixed Percentage Option New Fixed Percentage Option for Medicare's Recovery Claim: Effective November 7, 2011, the Centers for Medicare & Medicaid Services has implemented a new and simple fixed percentage option that is available to beneficiaries who receive certain types of liability insurance (including self-insurance) settlements of $5,000 or less

  36. $300 Threshold on Liability Settlements $300 Threshold on Liability Settlements: Medicare has implemented a threshold  for certain Liability Insurance cases. If all of Medicare's criteria are met, the MSPRC will not recover against the beneficiary's settlement, judgment, award or other payment. $300

  37. READY TO SETTLE? • Before you Settle: • 1. Have Current Conditional Payment Summary • Make sure any unrelated items have been challenged and struck so conditional payment amount is as lean as it can be. • 2. Discuss: • Options for paying settlement proceeds • Options for notifying MSPRC of settlement • Options for paying Medicare’s recovery demand • Any specific terms opponent will require in the Settlement Agreement/Release, and any “deal-breakers” • How waiver or appeal rights will be managed • How evidence of future accident-related treatment (if any) will be handled

  38. Reimbursement Final Recovery Letter *This is the actual amount of the lien* “We have determined that you are required to repay the Medicare Program $XXX.xx.”

  39. SETTLEMENT -RELEASE BEST PRACTICES Non Medicare Settlement Releases: a. ______ (initial): I did not incur and medical treatment related to any of the aforementioned incidents that were paid for by Medicare and I have acted in good faith and made all reasonable efforts to ensure same.              b. ______ (initial):  I do not have kidney failure.                c. ______ (initial):  I was less than 62.5 years old at the time of this accident.                d. ______ (initial):   I have consulted with a physician and have been advised that I will not need any future medical treatment related to this accident, or that the medical treatment I will receive is not materially different than that which I was receiving prior to this accident.                e. ______ (initial):  I will not be Medicare eligible within the next thirty months and do not anticipate applying for Social Security benefits during the next thirty months.

  40. SETTLEMENT -RELEASE BEST PRACTICES • Medicare Paid Medical Expenses • Medicare Lien • No Future Treatment - Treating Physician Certifies in writing (September 29, 2011 CMS Bulletin)

  41. SETTLEMENT -RELEASE BEST PRACTICES • Lien to be repaid out of settlement funds by defense • No future medical care anticipated per doctor • Defense to be provided final discharge letter • Good faith / reasonable efforts

  42. SETTLEMENT -RELEASE BEST PRACTICES • Medicare Paid Medical Expenses • Medicare Lien • Treatment Ongoing • Future Medical Treatment Expected • Plaintiff – No Worker’s Compensation Lien • LMSA Applies

  43. SETTLEMENT -RELEASE BEST PRACTICES • Lien to be repaid out of settlement funds by defense • “Set-Aside” language (amount, type of account, restrictions) • Defense to be provided discharge letter • Good faith / reasonable efforts

  44. SETTLEMENT -RELEASE BEST PRACTICES

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