Medicare announced today that it has implemented a $300 threshold for some tort liability subrogation cases. This is monumental news for accident lawyers who often get bogged down trying to settle in claims where there is some minor Medicare payment out there that “could” be related to the car accident.
Accordingly, Medicare will no longer claim subrogation in car accident and most other tort claims when:
1) the settlement (generally defined by Medicare as including settlement, judgment, award or other payment) is related to an alleged physical trauma-based incident (as opposed to an alleged exposure, ingestion or implantation);
2) the claimant does not have any additional settlements related to the same alleged incident; and
3) Medicare has not already issued a final demand.
The big news here is that Medicare may start to read the tea leaves and realizes that it has to make a less byzantine system for personal injury lawyers and one that is fair for victims.
- My original Haro v. Sebelius post (the case that may have started Medicare/Accident Lawyer glasnost)
- Court rules on motion to enforce settlement when the insurance company balks over lien issues
- Lien Resolution Services blog post
- ERISA liens and the “made whole” doctrine
- Five things you don’t know and should know about personal injury accident liens