The Centers for Medicare and Medicaid Services (CMS) has increased the reporting threshold from $300 to $1,000 dollars in physical trauma-based liability insurance settlements. The new reporting threshold applies to cases where a recovery demand from CMS had not been issued as of February 18, 2014.
This means that physical trauma-based liability settlements of $1,000 or less do not need to be reported to CMS and recovery of Medicare’s conditional payment amount for medical treatments from these settlements will not be pursued.
CMS is amending the Medicare Secondary Payer User Guide to reflect the reporting change.
You can view the Official CMS Alert by clicking here.