Medicare Secondary Payer Red Tape Moratorium

Text Size

Medicare Secondary Payer Red Tape Moratorium 

As most of you know, cases involving the Medicare Secondary Payer Act have been a nightmare. Part of the problem has been caused by new reporting requirements for liability settlements and the penalties associated with improper lien resolution. These penalties have created turmoil and delay for anyone trying to reach a settlement in any liability case.

AAJ is proud to announce that we’ve had a breakthrough. AAJ has worked for several months with the Department of Health and Human Services (HHS) and CMS. We are pleased to inform you that CMS has announced a one year delay in implementation on Section 111 reporting requirements for claims involving liability insurance, retroactive to October 1, 2010 through October 1, 2011.

This delay should facilitate settlements and allow for faster resolution of certain cases. In addition, we believe that during this period, CMS will suspend the issuance of MSP guidance documents, which have often been contradictory and a source of confusion. We will continue to work with both CMS and HHS during this period to reevaluate and clarify their Medicare Secondary Payer requirements. Further, we understand that CMS will not require data that is not reported during the upcoming year to be reported anytime in the future. CMS’s notification of this delay can be found on its Web site. View now »

We understand that this will not resolve all of your issues with the Medicare Secondary Payer Act, but AAJ will continue to work on resolving all Medicare Secondary Payer issues. In particular, we will focus on the issues surrounding finality and the lengthy period of time it often takes to resolve a lien with CMS. AAJ Public Affairs will continue to keep you apprised of any changes regarding this issue.

If you have additional questions, please contact Sarah Rooney, AAJ Regulatory Counsel, at

This is an example of how AAJ works every day to protect the civil justice system and to keep you practice sound and secure. Our educational and networking tools also help you stay at the top of your game and to be a more effective advocate for your clients.

We’d like to take this opportunity to ask you to please recruit one new AAJ member today. Our strength is in our numbers. A strong AAJ allows us to protect the rights of your clients and to protect your practice. Refer your colleagues to:

The American Association for Justice
777 6th Street, NW, Ste 200 • Washington, DC  20001 • 800.424.2725 or 202.965.3500

© 2014 AAJ