New Medicare Lien “Law”

On Tuesday, Medicare and Medicaid set forth new and revised conditional payment final demand letters that are reported to comply with Haro v. Sebelius, No. CV 09-134 TUC DCB, 2011 WL 2040219 (D. Ariz., May 9, 2011). The word on the street is that Medicare has six new conditional payment final demand letters with all new lien language in personal injury and workers’ comp cases. The District Court’s opinion may have a real impact on how lawyers deal with HHS on the reimbursement payments owed to Medicare by operation of the Medicare Secondary Payer statute

This case is a class action of Medicare beneficiaries. The plaintiffs’ were frustrated by the way Medicare liens are handled.  The District Court enjoined HHS from threatening to commence action to collect an MSP debt while a beneficiary’s appeal or waiver request is pending. The court enjoined HHS from requiring attorneys to hold back settlement or verdict proceeds pending the resolution of Medicare’s claim for reimbursement.

Is dealing with Medicare on product liability, malpractice and accident cases about to get a lot easier? I don’t know, but I’m giddy. I’ll let you know when I find out more details.

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