New Enforcement of Medicare Secondary Payment on Horizon

On December 1, 2009, the Department of Justice (DOJ), on behalf of the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS), brought an action against Monsanto, Solutia Inc., Pharmacia Corporation, Travelers Companies Inc., American International Group and their attorneys regarding the disbursement of funds for a $300 million class action settlement. The DOJ alleged that these companies, their insurers, and attorneys failed to reimburse Medicare for conditional payments paid by Medicare to beneficiaries who participated in the settlement. U.S. v. Stricker, (E.D. N.D. Ala 2009) (No. CV-09-PT-2423-E) (December 1, 2009). The DOJ’s recent actions represent an unprecedented enforcement of the Medicare Secondary Payer Statute (MSP).

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