Medicare gave a group of Medicare beneficiaries “conditional” Medicare benefits and later gave the beneficiaries personal injury settlements from secondary payers. In a class action suit, the beneficiaries challenged Medicare’s practices under the Medicare Secondary Prayer (MSP) statute, which allows the United States to bring an action to recover improperly reimbursed Medicare payments. The suit specifically challenged the MSP policy of demanding immediate reimbursement (within sixty days) before the resolution of any request for a waiver of the reimbursement or appeal sought by Medicare. Additionally, the beneficiaries challenged the Centers for Medicare and Medicaid Services’ use of scare tactics concerning reimbursements and claims.
In Haro, et al. v. Sebelius (NO CV 09134 TUC DCB, D.Ariz. 2011), the U.S. District Court for the District of Arizona found that Medicare’s collection practices exceeded the CMS statutory authority. The CMS appealed. However, according to the Center for Medicare Advocacy, in spite of its appeal, the CMS has already revised two of its MSP collection letters to comply with the court’s orders. The two revised letters are the “rights and responsibilities” letter and the “demand” letter sent by the MSP contractor to the beneficiary.
See CMS Eases Up on MSP Collection Practices in Wake of Haro Decision, Elder Law Answers, Aug. 1, 2011.
