AIA Asks For CMS Clarification On Liability Litigation Data Request

NU Online News Service, Sept. 30, 3:50 p.m. EDT

The American Insurance Association (AIA) is asking federal health regulators to delay a rule requiring collection of data relating to liability claims arising from unintentional ingestion or exposure to toxic substances.

A letter from the AIA specifically requests a delay in the collection of information and reporting of settlements, judgments and awards for a unique niche of liability claims under Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007.

Collection of the information was scheduled to begin Oct. 1.

The letter says CMS has acknowledged repeatedly that special guidance is needed in the unique context of product liability claims from such exposure. Insurance companies agree they can comply with other recoupment and disclosure provisions related to the 2007 law, but the data requirement presents special problems, according to the letter.

The letter was signed by Peter Foley, AIA vice president of claims administration.

"The parties are encountering numerous situations in liability claims from exposure, ingestion or implantation of a medical device…where they disagree over the scope of CMS' asserted powers of recovery," the letter says.

"As a result of this uncertainty, a large backlog of litigation from literally thousands of claimants across the country has developed as the parties–and even judges–await clear, practical instructions from CMS," the letter says.

This update corrects yesterday's version of the story, which incorrectly stated that workers' compensation coverage was involved in the settlement of some of these claims.