Are Liability and No-Fault MSAs finally here?

CMS recently published a proposed rule regarding liability insurance and the future medicals associated with such cases.  Per the proposed rule:

This proposed rule would clarify existing Medicare Secondary Payer (MSP) obligations associated with future medical items services related to liability insurance (including self-insurance), no fault insurance, and worker’s compensation settlements, judgments, awards, or other payments. This proposed rule would also remove obsolete regulations.

This proposed rule will also give “Economically Significant” Priority which, per the Office of Information and Regulatory Affairs means:

These regulatory actions are a subset of those designated by OIRA as significant. A regulatory action is determined to be “economically significant” if OIRA determines that it is likely to have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities.

What this information means for those who work in the world of liability and compliance is that the government is potentially making way for submission of liability and no-fault MSAs in the upcoming year. However, how this program will be implemented and address several legal and practical issues is unclear. This has been a recurring question when liability and no fault MSAs are discussed as many of these claims are governed by state laws which dictate future medical awards and coverage.

The Gordon and Rees Medicare Group will continue to follow this issue closely and will update you as soon as additional information is available.

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