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As most insurers and self-insureds are aware, Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 took effect this year and imposes stiff penalties for failure to take certain steps when settling cases where Medicare has paid benefits on behalf of the claimant. Specifically, every Responsible Reporting Entity (RRE) must register with the Centers for Medicare and Medicaid Services (CMS), which administers the program, and thereafter report on all claims with a Medicare beneficiary (including a decedent) resolved, in whole or in part, by settlement, judgment, award, or other payment. Failure to comply may result in monetary penalties of $1,000 for each day of non compliance with respect to each claimant.
Freeman Mathis & Gary recently published an article discussing the new law, its requirements, and suggestions for ensuring compliance. CMS, however, has issued an “ALERT” that changes the implementation dates for RREs to register and report claims. Previously, RREs were required to complete the registration process by June 30, 2009 and to begin mandatory reporting on July 1, 2009. RREs now have until September 30, 2009 to complete their registration, and mandatory reporting now begins on April 1, 2010.