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02/Aug/2024

The Centers for Medicare & Medicaid Services (CMS) released a revised Workers’ Compensation Medicare Set-Aside Arrangement (WCMSA) Reference Guide (“Reference Guide”) Version 4.1 on August 1, 2024. This Reference Guide replaces Version 4.0 which was released on April 1, 2024. There are a few notable changes when comparing the two Reference Guides.   

Changes in Version 4.1 of this Guide Include the Following Changes

  • By CMS’ request, the guide has been updated with details about WCMSA coordination with other health insurers (Section 4.1.3).

To download the new WCMSA Reference Guide v4.1 click here.  

This guide reflects information compiled from all WCMSA Regional Office (RO) Memoranda issued by CMS, from information provided on the CMS website, from information provided by the Workers Compensation Review Contractor (WCRC), and from the CMS WCMSA Operating Rules. The intent of this reference guide is to consolidate and supplant all historical memoranda in a single point of reference. Please discontinue the reference of prior documents.

For Additional Information

Medivest will continue to monitor changes occurring at CMS and will keep its readers up to date when such changes are announced. For questions, feel free to reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467.

 


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02/Aug/2024

The Centers for Medicare & Medicaid Services (CMS) has released the Self-Administration Toolkit for WCMSAs version 1.6 on August 1, 2024. The Toolkit replaces Version 1.5 which was released on May 15th.

To download the new Self-Administration Toolkit for WCMSA Version 1.6 click here.

Self-Administration with Additional Help

For injured parties who are considering self-administration, but who also want additional consultation on the process, Medivest provides a Self-Administration Kit. With purchase of the Medivest Medicare Set-Aside Self-Administration Kit, the injured person will receive a one-hour consultation on the proper administration of a Medicare Set-Aside account, covering topics including:

  • Where to deposit and hold Medicare Set-aside funds
  • Which expenses are allowed to be paid from a Medicare Set-Aside account
  • What rates must be used to negotiate and pay for expenses
  • How to annually report the Medicare Set-aside to the CMS
  • What to do if the MSA funds exhaust temporarily or permanently
  • How to discuss a Medicare set-aside with a medical provider
  • What are the tax implications of interest earned on Medicare Set-Aside funds

 

For Additional Information

Medivest will continue to monitor changes occurring at CMS and will keep its readers up to date when such changes are announced. For questions about self-administration, professional administration or anything else regarding rules and recommendations from CMS, feel free to reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467.

 


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30/Jul/2024

On July 19, 2024, the Centers for Medicare & Medicaid Services (CMS) created a new reference guide which will be referred to as, Non-Group Health Plan (NGHP) Medicare Secondary Payer (MSP) Beneficiary Reference Guide version 1.1.

The update provides details on the process of recovering conditional payments from the Medicare beneficiary, which typically involve the following steps:

  1. Reporting the case to the BCRC
  2. BCRC issues a Rights and Responsibilities letter
  3. BCRC identifies Medicare’s interim recovery amount and issues the CPL
  4. BCRC issues a Conditional Payment Notification (CPN)
  5. Dispute Process
  6. BCRC issues a recovery demand letter
  7. Assessment of Interest and Failure to Respond
  8. Referral of debt to the Department of Treasury

 

For further details on the steps of recovering conditional payments, visit CMS’ website here. To download the Non-Group Health Plan (NGHP) Medicare Secondary Payer (MSP) Beneficiary Reference Guide Version 1.1 by clicking here.

DISCLAIMER:

This guide is intended to provide Medicare beneficiaries with a reference manual to help them navigate the Medicare conditional payment recovery process. It is in no way intended as an exhaustive, step-by-step guide, nor is it intended to replace, supersede, or otherwise contradict any existing policy or procedural guidance. If anything in this manual appears to create ambiguity or to alter an existing process or obligation in any way, we recommend that the reader seek further guidance.

For Additional Information

Medivest will continue to monitor changes occurring at CMS and will keep its readers up to date when such changes are announced. For questions, feel free to reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467.

 

 


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08/Jul/2024

On July 2, 2024, the Centers for Medicare & Medicaid Services (CMS) created the Non-Group Health Plan (NGHP) Applicable Plan Appeals Reference Guide version 1.1.

To download the NGHP Applicable Plan Appeals Reference Guide Version 1.1 by clicking here.

Summary of NGHP Applicable Plan Appeals Reference Guide Version 1.1 and the Updates

Much like how the Workers’ Compensation Medicare Set-Aside Arrangement Reference Guide focuses on the submission process for Workers’ Compensation MSA’s, this appeals reference guide seems more focused on appeals by employers’ WC plans as opposed to liability matters which would be handled by the beneficiary directly or their representatives, as it only references the Commercial Repayment Center (the “CRC”) as the entity to which to submit a first level Redetermination request.  Because many of our readers inquire about Medicare lien appeals in the liability space, for liability cases, first level Redetermination requests may also be submitted via the Medicare Secondary Payer Recovery Portal (MSPRP) or the Benefits Coordination Recovery Center (“BCRC”) at P.O. Box 138832, P.O. Box 138832, Oklahoma City, OK 73113.  The four step administrative appeals process prior to being able to appeal in federal District Court is similar for WC, No Fault, and liability cases but sometimes, the contractors hired by CMS to review the various stages may sometimes be different (and often are different in different parts of the country as well).

To clarify the process necessary to appeal based on the exhaustion of benefits, the list of required documentation has been updated (Section 4.1.1).

For Additional Information

Medivest will continue to monitor changes occurring at CMS and will keep its readers up to date when such changes are announced. For questions, feel free to reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467.

 


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08/Jul/2024

On July 2, 2024, the Centers for Medicare & Medicaid Services (CMS) updated the MMSEA Section 111 NGHP User Guide version 7.6. It has been posted to the NGHP User Guide page on CMS.gov.  The NGHP User Guide version 7.6 replaces Version 7.5 which was released on April 1, 2024.  The updated MMSEA Section 111 NGHP User Guide version 7.6 has been posted to the NGHP User Guide page on CMS.gov.

MMSEA III – July 1, 2024 – NGHP User Guide Downloads 7.6

Updates:  An expanded and specific definition has been to clarify the qualification of a cumulative injury for Section 111 NGHP reporting. (Chapter 2).

Updates:  There are no changes for this version.

Updates:   The submission of information related to Workers’ Compensation Medicare Set-Aside Arrangements (WCMSAs) will be required for all records submitted with a TPOC date after April 4, 2025 (Section 6.5.1.1). As of January 1, 2024, the threshold for physical trauma-based liability insurance settlements will remain at $750. CMS will maintain the $750 threshold for no-fault insurance and workers’ compensation settlements, where the no-fault insurer or workers’ compensation entity does not otherwise have ongoing responsibility for medicals (Section 6.4).

Updates:  Information on how to resolve TIN address errors was added (Sections 6.3.3 and 6.6.5).

Updates:  An expanded and specific definition has been to clarify the qualification of a cumulative injury for Section 111 NGHP reporting (Section 3.2).

The language used to describe the date of incident and how a cumulative injury fits within that definition from CMS’ perspective with a caution note that CMS’ definition of cumulative injury is different from the insurance industry’s definition:

From Chapter 2, page 2-2, “CMS defines the Date of Incident (DOI) as follows:

  • The date of the accident (for an automobile or other accident);
  • The date of first exposure (for claims involving exposure, including; occupational disease, or any associated cumulative injury);
  • The date of first ingestion (for claims involving ingestion);
  • The date of the implant or date of first implant, if there are multiple implants (for claims involving implant(s); or
  • The earlier of the date that treatment for any manifestation of the cumulative injury began, when such treatment preceded formal diagnosis, or the first date that formal diagnosis was made by a medical practitioner (for claims involving cumulative injury).

Note: Cumulative injury refers to those categories of injuries that may persist or grow in severity, intensity, or pain but for which a formal diagnosis may not occur until a later date. Examples of cumulative injuries include, but are not limited to, carpal tunnel syndrome, or back pain that is not the result of an acute trauma. Exposure, ingestion, and inhalation injuries are not considered cumulative injuries for purposes of calculating DOI or any other reporting requirements. This CMS definition differs from the definition of that generally used by the insurance industry under specific circumstances. For the DOI used by the insurance and workers’ compensation industry, see Field 13 of the Claim Input File Detail Record in the NGHP User Guide Appendices, Chapter V.”

Updates:  The end-of-line character has been clarified for files using HEW software (270/271 File Translation).

 

For Additional Information

Medivest will continue to monitor changes occurring at CMS and will keep its readers up to date when such changes are announced. For questions, feel free to reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467.

 


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29/May/2024

When resolving a workers’ compensation case, the employer looks to see if the injured employee is a Medicare beneficiary and if there will be injury-related future medical care. If the answer to both questions is yes, then they must comply with the guidelines set forth by the Medicare Secondary Payer (MSP) statute.  

With healthcare and Medicare costs on the rise and as the open claim moves through the settlement process, below are some settlement objectives to help keep costs down and stay MSP compliance.      

  • WCMSA Arrangement: Centers for Medicaid and Medicare Services (CMS) recommends this method to ensure that Medicare’s interests are protected when settling a workers’ compensation claim that includes future medical expenses. Note that the WCMSA Arrangements are prepared based on today’s costs. 
  • MSP Compliance: Employers are mandated to follow the MSP statute; it will ensure Medicare compliance when considering Medicare’s interest in the settlement. Failure to do so, you could face legal consequences from breaching the settlement agreement. CMS can also obtain reimbursement of injury related payments made from anyone involved in the settlement, including the worker, workplace, insurance companies and attorneys.  
  • Cost Control: Striving to move an open claim toward settlement in the least expensive manner.  
  • Future Medical Care: Employers can help prioritize the injured employee’s well-being for future medical care after settlement by hiring Medivest for Professional Administration services. Medivest Professional Administration ensures the Medicare Set-Aside (MSA) funds are spent according to the allowable guidelines whereby preserving the MSA dollars.  

 

When to Request a WCMSA? 

A WCMSA is a financial agreement that allocates a portion of a workers’ compensation settlement to pay for future medical services related to the workers’ compensation injury, illness, or disease that would normally be covered by Medicare. All parties involved in a workers’ compensation case have significant responsibilities under the MSP statute to protect Medicare’s interests when resolving cases that include future medical expenses. 

  • Does the settlement contemplate future medical needs? 
  • Is the injured employee eligible or receiving Medicare benefits? 
  • Has the injured employee applied or re-applied for Social Security Disability Insurance (SSDI)? 
  • Is the injured employee 62.5 years old?  

 

Common WCMSA Cost Drivers 

When a Medivest WCMSA Arrangement is ordered, a Cost Driver Analysis report will be included. A Cost Driver Analysis report identifies the various costs that are driving up the WCMSA amount, such as opioids, injections, and surgeries. Below are some common WCMSA cost drivers when a report is prepared.  

  • Poly Pharmacy: The use of multiple drugs and lifetime pharmacy costs. 
  • Implantable Devices: Devices such as spinal cord stimulators, intrathecal pain pumps which also includes replacement cost and mediation refills. 
  • Surgeries and Replacement Costs: Non planned surgeries. 

 

WCMSA Cost Mitigation Strategies 

When carriers and employers optimize cost mitigation strategies, they can achieve an accurate and timely settlement. The following are examples of helpful strategies.  

  • RX Drug Cost: Reducing prescription drug costs can be used as a pre-MSA strategy by weaning/tapering off some medications, choosing a generic substitution, or using a physician letter (to address changes in medications. 
  • Cost Drivers: Identify treatments or medications that are driving up the total amount of the WCMSA. Review and possibly implement the recommendations provided in the Cost Driver Analyst report to help reduce the WCMSA amount.    
  • Rated Age: If medical records show evidence of a reduced life expectancy, then a Rated Age may be obtained and used when calculating the WCMSA. CMS approves Rated Ages when used in WCMSAs which reduces the life expectancy thus reducing the overall amount of the WCMSA figure 
  • Structured Settlement: Fund the MSA with a structured settlement instead of a lump sum. CMS approves MSAs to be structured and Medicare will cover expenses for the injured employee during temporary exhaustion if the MSA allocation was approved by CMS. Also, utilizing a structure can provide significant cost savings for the funding party compared to a lump sum payment.  

 

Ready To Order Your WCMSA? 

Begin by completing an online referral by clicking here and upload the following documents.  

  • Most recent 2 years of medical records 
  • Most recent 2 years of Rx invoice 
  • Most recent 2 years of indemnity payouts (Work Comp cases only) 

 

About Medivest  

Medivest has worked with carriers and employers for over 2 decades to understand their unique needs and responsibilities to their injured workers. Every WCMSA Arrangement is produced by a highly trained nurse that possesses a wealth of knowledge and experience in the preparation of these reports. We understand that creating and maintaining a WCMSA can be complex, let Medivest prepare your next report. Our nurses and staff hold industry certifications or designations including CMSP, CMSP-F, CPC, MSCC, CSSC, JD, RN, and BSN.  

 


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22/May/2024

The Centers for Medicare & Medicaid Services (CMS) has released the Self-Administration Toolkit for WCMSAs version 1.5 on May 15, 2024.  The Toolkit replaces Version 1.4 which was released on July 3, 2023.

To download the new Self-Administration Toolkit for WCMSA Version 1.5 click here.

Self-Administration With Additional Help

For injured parties who are considering self-administration, but who also want additional consultation on the process, Medivest provides a Self-Administration Kit. With purchase of the Medivest Medicare Set-Aside Self-Administration Kit, the injured person will receive a one-hour consultation on the proper administration of a Medicare Set-Aside account, covering topics including:

    • Where to deposit and hold Medicare Set-aside funds
    • Which expenses are allowed to be paid from a Medicare Set-Aside account
    • What rates must be used to negotiate and pay for expenses
    • How to annually report the Medicare Set-aside to the CMS
    • What to do if the MSA funds exhaust temporarily or permanently
    • How to discuss a Medicare set-aside with a medical provider
    • What are the tax implications of interest earned on Medicare Set-Aside funds

     

For Additional Information

Medivest will continue to monitor changes occurring at CMS and will keep its readers up to date when such changes are announced. For questions about self administration, professional administration or anything else regarding rules and recommendations from CMS, feel free to reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467.

 


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02/Apr/2024

The Centers for Medicare & Medicaid Services (CMS) released a revised Workers’ Compensation Medicare Set-Aside Arrangement (WCMSA) Reference Guide (“Reference Guide”) Version 4.0 on April 1, 2024. This Reference Guide replaces Version 3.9 which was released on May 15, 2023. There are a few notable changes when comparing the two Reference Guides.   

Changes in This Version 4.0 of this Guide Include the Following Changes:

  • Instruction specific to beneficiaries has been added to encourage them to use their Medicare.gov access to the portal for the most efficient method of submitting attestations (Sections 11.1.1 and 17.5). This user-friendly mechanism which allows CMS to gain potentially more MSA spending information than it has received via traditional mailing, may lead to CMS denying more future medical claims or potentially considering whether recovery of future medical payments that slipped through the cracks is viable. 
  • The CDC Life Table link was updated (10.3) – available to view here.

 

To download the new WCMSA Reference Guide v4.0 click hereThis guide reflects information compiled from all WCMSA Regional Office (RO) Memoranda issued by CMS, from information provided on the CMS website, from information provided by the Workers Compensation Review Contractor (WCRC), and from the CMS WCMSA Operating Rules. The intent of this reference guide is to consolidate and supplant all historical memoranda in a single point of reference. Please discontinue the reference of prior documents.

For Additional Information

Medivest will continue to monitor changes occurring at CMS and will keep its readers up to date when such changes are announced. For questions, feel free to reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467.

 


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31/Jan/2024

The January 18th, 2024 webinar hosted by Centers for Medicare & Medicaid Services (CMS) entitled Medicare Secondary Payer and Certain Civil Money Penalties (Non-Group Health Plan) is now available in the Download section of the What’s New page on CMS.gov. The webinar can be viewed in its entirety, or you may download the materials covered in PDF format by clicking here.   

Medivest will continue to monitor news and updates from CMS and will keep its readers up to date when important announcements are made. For questions regarding the information presented in this webinar or any other recent CMS updates, please reach out to the Medivest representative in your area by clicking here or call us direct at 877.725.2467. 

 


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22/Jan/2024

On January 10, 2024, the U.S. Department of Labor published a final rule, revising its guidance to employers and workers to help determine if a worker qualifies as an employee or an independent contractor (IC) under the Fair Labor Standards Act (FLSA).  The final ruling explains that the economic reality test is comprised of six-factors that are a guide to conduct the totality-of-the circumstances analysis to determine economic dependence. The new ruling takes effect March 11, 2024. To view the final ruling, click here 

Misclassification Issues 

Employers need to distinguish between employees and independent contractors when considering eligibility for workers’ compensation. Correctly distinguishing between employees and independent contractors is crucial for legal compliance, cost management, liability avoidance, and ensuring workers receive the appropriate benefits and protections. Misclassification can have significant financial and legal consequences for employers. 

What is the Economic Realities Test?  

The US Department of Labor uses an economic realities test to help employers comply with the law, reduce the risk of employee misclassification, and to help determine if a worker is classified as an independent contractor or as an employee. This test consists of six-factors that are all weighed against each other. All factors should be considered.  No single factor determines a worker’s status.  No one factor or combination of factors is more important than the other factors.  This test considers the totality of the circumstances of the working relationship. Below are the six (6) factors. 

  1. Opportunity for profit or loss depending on managerial skill, 
  2. Investments by the worker and the employer, 
  3. Permanence of the work relationship, 
  4. Nature and degree of control, 
  5. Whether the work performed is integral to the employer’s business  
  6. Skill and initiative 

 

About Medivest 

Since 1996 Medivest has been helping our clients navigate the complexities of MSP compliance.  We offer settlement solutions for workers’ compensation and liability settlements. Count on Medivest to help keep you up to date with the constant updates regarding Federal Register rulings, Medicare Secondary Payer legislation and changes related to CMS’s enforcement of the Medicare Secondary Payer.  For questions, feel free to reach out to a Medivest representative in your area by clicking here or call us direct at 877.725.2467. 

 


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