Addendum to Use of Medicare and Medicaid Liens in Personal Injury Cases
Beginning July 1, 2009, Medicare Secondary Payor requires insurers to report any settlement, judgment or award to Medicare. Failure to report any settlement, judgment or award will result in a $1,000.00 per day penalty to the insurance company. Medicare Secondary Payor can sue for double damages, plus interest. The suit can be initiated against the insurance company, the Medicare beneficiary and his or her attorney, as well as the physician, if the settlement of the claim or suit does not protect Medicare’s subrogation interests.
Medicare is now contacting auto insurance liability insurance companies notifying them that funds be held for payment of Medicare liens. This may even include funds for payment of future medical services. If this happens, the attorney will probably receive a settlement check with Medicare’s name on it. This will certainly complicate and delay the settlement distribution to the medicare beneficiary.
August 19th, 2009 at 7:50 am
Very interesting news. i wonder how it will effect personal injury cases. Thanks for the article post.
August 28th, 2009 at 11:05 am
that is a stiff penalty – certainly enough to get some people’s attention. Thanks for reporting!