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Poorly-drafted Medicare legislation adding costs

Poorly-drafted 2007 legislation intended to help Medicare collect money it's owed when secondary payers (such as personal injury defendants) reimburse Medicare recipients for medical expenses already paid by Medicare is having adverse consequences. Because insurers are strictly liable for $1000/day fines if they accidentally shortchange Medicare a penny, they are essentially forced to get Medicare confirmation before signing off on settlement payments. But there is no time limit for Medicare to respond, and no statute of limitations for Medicare to decide whether to collect; regulatory compliance costs are effectively a hidden tax on all parties involved. Both trial lawyers and the Chamber of Commerce are lobbying for a fix. [NLJ; HR 1063]

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Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.