1. Copyright 2014. ISO Claims Partners retains sole ownership and copyright rights to this presentation. Any use or reproduction of this presentation without prior written consent and approval of ISO Claims Partners is prohibited. 1 Medicare Hot Topics Prepared by: Mark Popolizio, Jessica Smythe

2. 2 SMART Act - new laws enacted and CMS implementation proposals o Section 111 o Conditional payments o Other MSP areas Independent CMS proposals o Future medicals question Congressional activity o WCMSA Judicial decisions o Several areas, most notably Medicare Advantage Let’s take a look by MSP area …. MSP Compliance – Where is the Action?

3. Section 111 Hot Topics

4. 4 1.Section 111 penalty provisions being formulated SMART Act softens the Section 111 penalty provision CMS released ANPRM in December – comments closed 2/10/14 Waiting for CMS to know release its exact proposals (including “good faith” safe harbors Issues/considerations 2.New low dollar TPOC threshold for liability claims SMART Act calls for a yearly low dollar threshold for liability claims CMS must set this figure for each the next year by every November 15 Feb 2014 --- CMS announced that the new low dollar liability TPOC will be $1,000 starting 10/1/14 (this was to supposed to reset to $300 – but will now be $1,000 come 10/1) No change in the WC TPOC threshold Section 111 – Hot Topics

5. 5 3.SSN/HICN SMART Act calls for CMS to eliminate the required use of SSN/HICNs for 111 purposes Technically due this July – but CMS afforded liberal time extensions Case law consideration: Taylor v. General Electric 4.ICD 10 Transition (delayed to 10/1/15) Section 111 – Hot Topics

6. Conditional Payments – Hot Topics

7. 7 1.New Expedited Conditional Payment Process SMART Act -- Parties can get “final” CP figure prior to settlement Sept 2013 – CMS releases Interim Final Rule (IFR) to implement Issues created -- – SMART Act timetables vs. CMS’ IFR – CMS proposes that full functionality of the portal will not be ready until Jan 2016 Issues/considerations/status 2.Challenging CP Claims (Appeals) SMART Act -- formal appeal rights extended to primary payers December 2013: CMS releases Proposed Rule CMS proposing that payers have access to the existing five level administrative review process (which included access to federal court) Issues/considerations/status Conditional Payments – Hot Topics

8. 8 3.New low dollar CP threshold for physical trauma liability claims SMART Act calls for low dollar CP threshold for physical trauma liability claims Feb 28, 2014: CMS sets this figure at $1,000 Thus, physical trauma liability settlements of $1,000 or less are exempt from CP consideration Threshold to be reset each year (CMS must announce figure by Nov. 15 th each year) Issues/considerations Conditional Payments – Hot Topics

9. WCMSA – Hot Topics

10. 10 1.CMS Proposes to Expand its “Reconsideration” process Current process What is CMS proposing? How would it differ from current state? Comment period closed 3/31/14 Waiting now for CMS to hold a Town Hall call to discuss how it will expand the process 2.WCRC Contractor WCMSA Reference Guide Consequence of WCRC’s approach since November Claims impact Recent developments What does the future hold? WCMSA Issues – Hot Topics

11. 11 3. HR 1982 (WCMSA Reform Bill) Currently pending in Congress Proposes several reforms to the WCMSA process including (in general): – Settlements below $25k exempt for MSP – Streamlining review thresholds – Percentage calculation method for certain cases – Direct deposit option – Establish review timelines and appeals process – Greater recognition of state law – Limited liability for post-settlement administration WCMSA Issues – Hot Topics

12. LMSA – Hot Topics

13. 13 1.CMS’ ANPRM – Waiting for Medicare’s Next Move ANPRM released in June 2012 CMS seeking to establish formal legal regulations governing “future medicals” in liability settlements Series of 7 options – when action would (and would not) be necessary – When specific action would be necessary, CMS proposing that the plaintiff could: Use whole settlement for future meds Propose a LMSA Propose a specified percentage of his/her net proceeds Waiting for CMS to now release its NPRM – Was supposed to be released in September 2013 – But nothing to date Issues/Considerations/Impact LMSA Issues – Hot Topics

14. Medicare Advantage Plans

15. 15 1.MA Plans – The next compliance frontier? o Original Medicare vs. MA Plans o Facts and Figures 2.Current issues : o Do MA plans have private cause of action rights? o Does the MA Act preempt state anti-lien/subrogation laws? Case law considerations Watch list cases 3. Practical claims considerations – How to deal with MA Plans? Medicare Advantage Plans – Hot Topics

16. 16 Questions? Mark Popolizio (786) 459-9117 mpopolizio@iso.com Jessica Smythe (919) 437-8037 jsmythe@iso.com www.iso.com/claimspartners