Senate bill would streamline Medicare Secondary Payer system
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WASHINGTON—Two U.S. senators have introduced an employer- and insurer-backed bill that is intended to streamline the current Medicare Secondary Payer system.
Under the system, self-insured employers, insurers and others must notify the Centers for Medicare and Medicaid Services of all workers compensation, other liability settlements or payments that involve Medicare recipients.
But insurers and employers have complained that they are often stymied from reaching settlements with workers comp claimants or parties to a liability claim because of system inefficiencies.
So they support passage of legislation known as the Strengthening Medicare and Repaying Taxpayers Act, or SMART Act, which was introduced into the U.S. House of Representatives last spring.
On Wednesday, Sens. Ron Wyden, D-Ore., and Rob Portman, R-Ohio, introduced S. 1718 in their chamber.
“Today, Medicare beneficiaries and third parties have significant problems settling claims, because they cannot find out how much money has to be repaid to Medicare,” Roy Franco, co-chair of the Washington-based Medicare Advocacy Recovery Coalition, said in a statement.
“These unnecessary problems cause settlements to be needlessly delayed and waste limited taxpayer, business and judicial resources. The current MSP system is also confusing Medicare beneficiaries, the most vulnerable of our population. Unfortunately, these many problems are actually limiting the return of dollars owed to the Medicare Trust Fund,” Mr. Franco said.
Among other things, the SMART Act would require Medicare to respond within 65 days of a party's request for information on Medicare's final payment demand.
