Monday, December 15, 2014

CMS Update: Section 111 Reporting Issues

On December 10, 2014, CMS held an NGHP telephone conference to address issues with Section 111 reporting.

In the first part of the call CMS went over recent alerts that have been issued regarding the use of partial Social Security Numbers for the query process, the reporting of Recovery Agent information, and changes in how CMS names its Section 111 response files.  As we previously reported, on September 10, 2014, CMS issued an Alert providing that, beginning January 5, 2015, where a NGHP RRE cannot obtain an individual’s HICN or full SSN, the RRE may report the following data elements that will enable CMS to properly identify a Medicare beneficiary:

Last five digits of SSN
•First Initial
•Surname
•Date of Birth
•Gender

*The September 10, 2014, Alert is available for download here

*CMS issued a follow-up Alert on November 25, 2014, providing technical guidance on partial SSN submissions. This Alert is available for download here.

As discussed in the call, on November 10, 2014, CMS issued an Alert on reporting Recovery Agent information under Section 111.  This Alert provides that beginning July 13, 2015, for RREs that have a separate agent that assists with tasks related to MSP recovery demands, RREs may provide CMS with information about the agent in fields 16 through 22 on the TIN reference file.  This process will replace the current process for RREs to submit TPA information on the TIN reference file.  If an RRE provides CMS with Recovery Agent information on the TIN reference file, both the RRE and the Recovery Agent will receive any recovery correspondence sent as a result of information reported under Section 111.

*The November 10, 2014, Alert is available for download here.

As CMS also discussed, CMS issued an Alert on October 27, 2014, providing that beginning April 6, 2015, the naming convention for Section 111 response files will be modified to ensure that all response file names are unique.

*The October 27, 2014, Alert is available for download here.

CMS said that an updated NGHP User Guide incorporating these changes would be issued in January 2015.

CMS confirmed in the question and answer session that RREs would be unable to test query submission files with partial SSNs prior to January 5, 2015.  CMS also stated that RREs that prefer to query with full SSNs may continue to use the prior model language on collection of HICNs and SSNs that does not address the option of providing a partial SSN, even though the prior model language is no longer available on the CMS website.

CMS also answered questions related to loss of consortium claims.  CMS confirmed that if a Release specifically releases an RRE from a loss of consortium claim, the settlement would reportable under Section 111 even if state law specifically does not allow a claimant to assert a loss of consortium claim.  CMS indicated that the same applies to any type of claim that cannot be legally asserted.  If a claim is specifically released, the fact that it could not have been legally asserted does not make it not reportable.  CMS said that they are still considering an Alert providing guidance on loss of consortium claims, though CMS gave no time frame for providing the Alert.

In addition, CMS addressed questions related to short term travel, hospital confinement, and accident only policies.  CMS indicated that an accidental death benefit paid under an accident policy would not need to be reported since it is paid without regard to medical expenses being incurred.  CMS did say, however, that payments made under a hospital confinement policy would be reportable, even though the payments would not be made specifically for medical expenses and are payable in a set amount.  This information is consistent with the statement in the User Guide that “Accident & Health, Short Term Travel and Occupational Accident Products are considered no-fault insurance by CMS and reportable as such under Section 111.”  It is interesting to note, however, that the following definition of no-fault insurance under 42 CFR 411.50(b) is more narrow: “No-fault insurance means insurance that pays for medical expenses for injuries sustained on the property or premises of the insured, or in the use, occupancy, or operation of an automobile, regardless of who may have been responsible for causing the accident.  This insurance includes but is not limited to automobile, homeowners, and commercial plans. It is sometimes called ‘medical payments coverage’, ‘personal injury protection’, or ‘medical expense coverage’.” The types of policies at issue do not specifically pay for injuries sustained on the property of the insured or in the use of an automobile, though they obviously could.

We will continue to provide you with all additional updates as they are released.

Tuesday, December 9, 2014

MSP Update: Court fails to certify a class in Avandia

The Eastern District of Pennsylvania decided a case in the Avandia series.

Humana filed a motion to certify a class, arguing that certification of a class will facilitate efficient resolution of the two categories of unresolved MSP Act claims, which are 1) those in which the MAO is not a signatory to a private lien resolution program, and 2) those in which the MAO is a signatory to a private lien resolution program, but the settling claimant does not opt to resolve his or her lien through that program. The Court found against Humana and failed to certify the class, noting that Humana "has failed to prove the requirements of commonality and predominance, and failed to demonstrate the superiority of the class action to adjudicate the controversy."

We are continuing to follow this case and will update you with information as it released.

CMS Issues Subsequent Alert on Reporting HICNs and SSNs

CMS issued a subsequent Alert on November 25, 2014 to provide additional instructions for entry of partial Social Security Numbers (SSN) as specified in the original Alert issued on September 10, 2014. As provided in that Alert, where a NGHP RRE cannot obtain an individual’s full SSN or Medicare Health Insurance Claim Number (HICN), the RRE may report the last five digits of the individual’s SSN, first initial, surname, date of birth, and gender. If the RRE cannot obtain the partial or full SSN or the HICN, the attempts to do so must be documented. The Model Language has been revised to reflect an RRE’s efforts to obtain the partial SSN. This revised language can be found here.

The subsequent Alert provides technical guidance regarding partial SSN submission as well as steps for remaining in compliance with Section 111 following the receipt of a response.  For RREs planning to submit using partial SSNs, the following technical requirements apply:

  • For RREs using HEW software, a new version must be downloaded to accommodate the revisions. This software will be available on January 5, 2015.
  • For RREs using their own X12 translator, a revised X12 270/271 Companion Guide must be obtained. This guide is currently available for download here.
*These technical changes do not apply to RREs who do not plan to submit using partial SSNs.

In order to remain in compliance with Section 111, it is critical to understand the response messages received when an RRE submits a partial SSN.  A new Disposition Code “DP” and new Beneficiary Not Found page have been added and indicate there were multiple Medicare beneficiary records identified based upon the partial SSN and data submitted.  When this message is received, it is not to be treated as a Disposition Code “51" which indicates that the individual is not identified as a beneficiary based on the information provided.  Where an RRE receives Disposition Code “DP” or a message indicating multiple matching records exist, the following steps must be taken to remain in compliance with the Section 111 reporting requirements:

  • Verify the the SSN, name, gender and date of birth were entered accurately and resubmit;
  • Enter the full SSN (if available) and resubmit;
  • If the system is still unable to locae a distinct match after resubmission, contact BCRC at 1-855-798-2627. The RRE should provide the claim information to the customer service representative to file a self-report.
The full technical Alert can be found at by clicking here.

Monday, December 8, 2014

Update: December Webinar Rescheduled

January 22, 2015

 @ 1:00 PM CST


The webinar originally scheduled for December 10, 2014 at 1:00 PM CST has been moved, the webinar will now take place January 22, 2015 at 1:00 PM CST.We apologize for any inconvenience this rescheduling may cause but look forward to your participation in January.


Attendees will receive one CEU credit for the states of AL, AK, FL, GA, IN, KY, LA, MS, NC, NH, OK, OR, and TX, if needed.