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Significance of AAJ’s August 2009 Emergency Memo on MMSEA and MSA?

Several weeks ago, there was a ruffle of attention paid to MMSEA and Medicare Set Aside (MSA) when Anthony Tarricone, president of the American Association for Justice, penned an August 11, 2009 “Emergency Medicare Set Aside Information” memo to AAJ members, which consist of plaintiff and consumer advocate lawyers.

The Memo is available on the links to the right of your screen, under “Resources.”

It should be clear that the memo is not so much directed at explaining MMSEA as it is an attempt to dispel an apparent rumor or concern about MMSEA affecting MSAs (incidentally, we agree with Mr. Tarricone: MMSEA does not affect MSAs, to the extent there was a concern here).  Admittedly, we had not heard the concern he was addressing — however, it suggests a continued misunderstanding and misapprehension of the new MMSEA requirements.

In his memo, he confirms that “attorneys for both the plaintiff and defendant are required to report certain information to [CMS].”  He then notes, however, that MMSEA’s new reporting requirements are directed at “defendants and insurers, but it does not include plaintiffs’ attorneys.”  True, but hopefully those sentences won’t be overinterpreted to suggest that plaintiff lawyers do not need to report to CMS nor that the new reporting requirements may bog down settlements.  Indeed,  plaintiff counsel should still be wary that all liens are timely assessed and resolved since greater attention is being paid in light of the new law and serious fines are contemplated.

His point in the memo, however, is that MSA situations, where the trust fund has made conditional payments for medical costs, must be reported in workers compensation claims but there is no law regarding liability claims — and that MMSEA does not change the picture.

Fair enough.  Looking ahead though, it does seem a logical next step for CMS to require mandatory MSA reporting in liability cases once the MMSEA wrinkles have been ironed out.

Hats off to Cal Biz Lit website, which noted that a CMS telephone conference discussion likewise noted that the “concern” about MSAs in light of MMSEA is off topic.

If there was a confusion or problem, it appears solved.  That said, the fact that MMSEA created this confusion is indicative of a larger, looming problem.

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