On August 19, 2014,
CMS issued an alert addressing Section 111 reporting obligations and Medicare's
recovery of conditional payment claims in liability cases involving
alleged injuries due to exposure, ingestion, or implant prior to December 5,
1980. The alert clarifies that CMS will look to the dates alleged in the "most
recently amended operative complaint or comparable supplemental pleading" to
determine whether Section 111 reporting is required and whether Medicare will
seek recovery of conditional payment claims. The alert provides as
follows:
In the following
situations, Medicare will assert a recovery claim against settlements,
judgments, awards, or other payments, and the Medicare, Medicaid, and SCHIP
Extension Act of 2007 (MMSEA) Section 111 MSP mandatory reporting rules must be
followed:
- Exposure, ingestion, or the alleged effects of an implant on or after December 5, 1980, is claimed, released, or effectively released in the most recently amended operative complaint or comparable supplemental pleading;
- A specified length of exposure or ingestion is required for the claimant to obtain the settlement, judgment, award, or other payment, and the claimant’s date of first exposure plus the specified length of time in the settlement, judgment, award or other payment equals a date on or after December 5, 1980. This also applies to implanted medical devices; and
- A requirement of the settlement, judgment, award, or other payment is that the claimant was exposed to, or ingested, a substance on or after December 5, 1980. This rule also applies if the settlement, judgment, award, or other payment depends on an implant that was never removed or was removed on or after December 5, 1980.
- All exposure or ingestion ended or the implant was removed before December 5,1980;
- Exposure, ingestion, or an implant on or after December 5, 1980, has not been claimed in the most recently amended operative complaint (or comparable supplemental pleading) and/or specifically released; and
- There is either no release for the exposure, ingestion, or an implant on or after December 5, 1980, or where there is such a release, it is a broad general release (rather than a specific release), which effectively releases exposure or ingestion on or after December 5, 1980. The rule also applies if the broad general release involves an implant.
Any operative amended complaint (or comparable
supplemental pleading) must occur prior to the date of settlement, judgment,
award, or other payment and must not have the effect of improperly shifting the
burden to Medicare by amending the prior complaint(s) to remove any claim for
medical damages, care, items and/or services, etc.
Where a complaint is amended by Court Order and that Order limits Medicare’s recovery claim based on the criteria contained in this alert, CMS will defer to the Order. CMS will not defer to Orders that contradict governing MSP policy, law, or regulation.
Where a complaint is amended by Court Order and that Order limits Medicare’s recovery claim based on the criteria contained in this alert, CMS will defer to the Order. CMS will not defer to Orders that contradict governing MSP policy, law, or regulation.
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