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New Federal Law Imposes $1,000 per Day Fine for Late Reporting of Payments to Medicare Claimants |
October 13, 2009
Previously published on October 9, 2009
The federal law that requires plaintiffs and defendants in personal injury lawsuits to reimburse Medicare for payments made to a plaintiff now imposes stiff penalties on defendants that fail to report these payments. The Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA) requires self-insured defendants and certain categories of insured defendants to begin reporting settlements, awards, or other payments made to plaintiffs in 2010. The failure to report can result in a fine of $1,000 per plaintiff for each day the reporting is late. In addition, the pre-existing law allows the government to seek double recovery from a defendant if the plaintiff fails to reimburse Medicare after receipt of a settlement payment from the defendant.
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The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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