Advice from a workers' comp attorney

A summary judgment issued in the District Court of Arizona effectively suspended Medicare's ability to issue Final Demand Letters seeking reimbursement from the proceeds of settlements under the Medicare Secondary Payer provisions. As Medicare revises the language in the letters, litigants are left wondering how to proceed.

"If you've been able to obtain an up-to-date conditional payment, send the letter back to Medicare with full payment and settlement documents and indicate that you have resolved their interests," said Jim Pocius, shareholder for Marshall, Dennehey, Warner, Coleman & Goggin in Philadelphia. "By doing so, you'll put the burden on the agency, if the agency believes it's entitled to any more money, and you can settle your case."

And if the Medicare conditional payment is not up to date? "Caution must be exercised, perhaps by escrowing extra funds in case there are later additional amounts owed to Medicare," Pocius said.

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July 25, 2011

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