CMS Takes Steps To Expand Liability And No-Fault MSAs

Last year on June 8, 2016, the Centers for Medicare and Medicaid Services (CMS) announced it was considering expanding its voluntary Medicare Set-Aside (MSA) review process to include the review of proposed liability insurance (including self-insurance) and no-fault insurance MSA amounts. This year, steps have been taken to expand this effort.

In the CMS Manual System documentation issued February 3, 2017, Transmittal 1787 summarized several changes to the new common working file for Medicare Secondary Payer (MSP) arrangements. The file changes expand the requirements for Medicare contractors to provide information for creating Liability Insurance Medicare Set-Aside (LMSA) or No-Fault Insurance Medicare Set-Aside (NFMSA) records. The implementation date for analysis and design was July 3, 2017, with implementation due on October 2, 2017.

While delays for implementation of the system are expected, the advent of LMSA and NFMSA arrangements are coming in the future. It is anticipated that 2018 will usher in a new era of reporting for these subjects. For the past year, CMS has made it a priority to comply with the Government Accountability Office final report entitled “MSP Additional Steps are Needed to Improve Program Effectiveness for Non Group Health Plans” (GAO-12-333).

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