Law & Economics Center

The Impact of Medicare Secondary Payer Reporting Requirements on Settlement

Event Date: Friday, May 22, 2015

Location: Rayburn House Office Building, Room 2237, Washington, DC

Program Description: Congress designed the Medicare Secondary Payer Act of 1980 (MSP) to ensure that first-party insurers would reimburse Medicare for payments it had made to beneficiaries as a secondary insurer. In an effort to enhance MSP compliance, in 2007, Congress passed the Medicare, Medicaid and SCHIP Extension Act of 2007 (MMSEA), which required third-party insurers to notify the Center for Medicare Services (CMS) of judgments, payments or settlements involving Medicare beneficiaries. Because CMS has often faced considerable delays in producing a list of conditional payments it is owed, and because future medical expenses are also covered under the MMSEA, these reporting requirements have generated considerable uncertainty surrounding litigation. Economics predicts that uncertainty will reduce the likelihood of settlement.

Consistent with this hypothesis, new research from the Law & Economics Center shows that, on average, implementation of the MMSEA’s reporting requirements led to a delay in the resolution of disputes involving auto accidents of about six months. Please join us for a discussion on this new research and its implications for current MSP policy.


David J. Farber
Partner, King & Spalding

Jonathan Klick
Professor of Law, University of Pennsylvania Law School

Margaret O'Connor-Fitzpatrick
Senior Claims Technical Administrator, MetLife

Moderator: James C. Cooper
Director, Research & Policy, Law & Economics Center

For More Information, Contact: CCJCA


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