What Are the Risks of Noncompliance with the Federal Regulation?
If you have settled claims that qualified for MSA arrangements and did not get one approved by the CMS, Medicare has a valid lien for any payments it may have made. Federal regulations allow Medicare to bring an action against “any responsible party.” Should Medicare discover its lien and assert its subrogation claim, the primary payer, which is typically considered the insurance plan responsible for paying the claim, must reimburse Medicare within a prescribed period of time or be subject to interest and penalties that can potentially double the damages. Ongoing responsibility for medical payments may continue, and Medicare may refuse future benefits to the injured worker. As earlier indicated, liens going back to the inception of the law in 1980 exceed $40 billion. When and if a lien is identified and asserted, irrespective of this unofficial 2001 date, you should deal with it quickly as the time frame for compliance is short and the penalties stiff for failure to act. What Should I
