CBO Says Widely-Supported Medicare Secondary Payment Bill Will Save Money

The Congressional Budget Office has projected that passage of legislation that would streamline enforcement of the Medicare Secondary Payment program would save the government money.

The bill is H.R. 1063, the SMART Act, or The Strengthening Medicare and Repaying Taxpayers Act.

The bipartisan legislation was reported to the House floor Sept. 20 by the House Energy and Commerce Committee.

According to the CBO, passage of the legislation would save the government $45 million over 10 years.

It would do so by making it easier for other payers, such as insurers, to repay Medicare, thus reducing program costs, CBO said.

The bill would clarify industry-reporting requirements under legislation enacted in 2007, which requires reimbursement to Medicare for payments made to people who are also paid later through workers’ compensation or liability claims.

Melissa Shelk, vice president of federal affairs for the American Insurance Association, says, “AIA is pleased with the CBO score of HR 1063 and that it recognizes that Medicare’s receiving conditional payment reimbursements more quickly will reduce program costs.”

David Farber, a partner at Patton Boggs in Washington, and lobbyist for the Medicare Advocacy Recovery Coalition (MARC), a group of employers and other third-party payers, says the coalition “is delighted” that the CBO has issued a positive score for the legislation.

“The CBO score supports the benefits of the legislation,” Farber says, adding, “We look forward to Congress enacting the legislation into law this year.”

The bill was introduced last year in the House; similar legislation has been introduced in the Senate.

The issue has been around for several years because of industry and plaintiff lawyer concern that the original bill, added to non-germane legislation in 2007, has not been implemented efficiently by the Centers for Medicare and Medicaid Services, creating delays and additional costs for CMS, insurance companies, third-party payers and beneficiaries and their lawyers.

The bill’s next step is sequential referral to the House Ways and Means Committee, a committee with “concurrent jurisdiction.”

Given its broad bipartisan support, it is likely to pass muster as is in that Committee, win House support shortly, and be accepted by the Senate sometime during the current so-called “lame-duck” session.

Comments

Resource Center

View All »

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

How Many Of Your Clients Are At Risk Of Flood?

Every home is vulnerable to flooding. Learn four compelling reasons why discussing flood insurance with...

Gauging your Business Intelligence Analytics Capabilities and the Impact of...

Big Data, Data Lakes and Data Swamps, How to gauge your company's Big Data readiness....

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.