A House panel has passed legislation, sought by both industrygroups and plaintiff lawyers, designed to streamline enforcement ofthe Medicare Secondary Payment (MSP) program.

The legislation, H.R. 1063, is the SMART Act, or TheStrengthening Medicare and Repaying Taxpayers Act. It was reportedout Tuesday by the Health Subcommittee of the House Energy &Commerce Committee, and was drafted by both Republican andDemocratic members of the E&C Committee.

The bill would clarify industry-reporting requirements underlegislation enacted in 2007, which requires reimbursement toMedicare for payments made to people who are also paid laterthrough workers' compensation or liability claims.

The MSP process is supposed to ensure Medicare is reimbursed formedical bills that are the responsibility of another party—such asan insurer or negligent party.

However, the legislation is somewhat changed from the billoriginally introduced in March 2011 by Rep. Tim Murphy, R-Pa., andRep. Ron Kind, D-Wis.

Among the revisions, the current bill would require the Centersfor Medicare and Medicaid Services to maintain a web portal,accessible to Medicare beneficiaries, so that beneficiaries candetermine when claims are paid, including those specific to aninjury or accident.

Amendments to the bill also require CMS to provide a secure wayfor beneficiaries, or their representatives, to access thewebsite.

Moreover, under the substitute, CMS requires all partiesinvolved in a claim to notify CMS within 120 days of settlement,and for CMS to establish a process of appeals of paymentdeterminations. Beneficiaries would have to send CMS a signednotification of intent to appeal under the revised bill.

The bill gives CMS 65 days to ensure the website is up to datewith the latest claims.

A Senate companion bill, S. 1718, was introduced last Octoberand now has 19 bipartisan co-sponsors. It is unclear whetherthe Senate will accept the amendments to the House bill.

Melissa Shelk, vice president for federal affairs for theAmerican Insurance Association, says the bill, if enacted, “willimprove and speed up claims settlements for Medicare beneficiarieswhile continuing to appropriately reimburse the Medicare trustfund.”

David Farber, a lawyer for the Medicare Advocacy RecoveryCoalition (MARC), a group of large employers who earlier this yearworked with members of the House to craft the original bill, alsovoiced support. “We are delighted Congress has chosen to take upthis important legislation,” Farber says.