MSPRC issues new payment option
The MSPRC has posted the announcement regarding the fixed percentage option for repayment of conditional payments for certain types of liability insurance settlements of $5K or less.
Beginning November 7, 2011, a beneficiary who meets the below noted criteria, may resolve their conditional payment lien by paying Medicare 25% of his/her total liability insurance settlement.
The following criteria must be met in order to elect this option:
The liability insurance (including self-insurance) settlement is for a physical trauma based injury. (This means that it does not relate to ingestion, exposure, or medical implant), and
The total liability settlement, judgment, award, or other payment is $5000 or less, and
The beneficiary elects the option within the required timeframe and Medicare has not issued a demand letter or other request for reimbursement related to the incident, and
The beneficiary has not received and does not expect to receive any other settlements, judgments, awards, or other payments related to the incident.
The complete explanation, with instructions on how and when to elect this option, are expected to be posted on the website on November 7, 2011.
Of note, the announcement indicates that in electing this option, the beneficiary will relinquish the right to appeal the fixed payment amount or to request a waiver of recovery for the fixed payment amount.