Updated CMS Reference and User Guides Reveal Minor Changes

October 18, 2018

Tower MSA Partners explains CMS updates to ORM and NOINJ rules in the Section 111 reporting user guide.

On 10/1/2018, the Centers for Medicare and Medicaid Services (CMS) released updates to the Workers’ Compensation Medicare Set-Aside (WCMSA) Reference Guide, the Medicare Secondary Payer Recovery Portal (MSPRP) User Guide and the MMSEA Section 111 Medicare Secondary Payer Mandatory Reporting NGHP User Guide. These updates to the reference guide and user guides are all fairly minor, having minimal to moderate impact on the associated CMS MSP processes. A summary of the updates is provided below.

WCMSA Reference Guide

The WCMSA Reference Guide provides for most CMS policies pertaining to the review and approval of MSAs. Version 2.8 of the guide provides as follows:

HICN Replaced with MBI: As CMS explains:

As required by Section 501 of the Medicare Access and CHIP (Children’s Health Insurance Program) Reauthorization Act (MACRA) of 2015, CMS must discontinue all Social Security Number (SSN)-based Medicare identifiers and distribute a new 11-byte Medicare Beneficiary Identifier (MBI)-based card to each Medicare beneficiary by April 2019. All fields formerly labeled as “HICN” have been relabeled as “Medicare ID” and can accept either a HICN or the new MBI.

Updated CDC Life Expectancy Table Link: While with this Reference Guide update CMS is not presently changing the CDC Life Expectancy Table used for calculating life expectancy in the MSA, CMS is updating the link which was outdated.

Revised Tables Pertaining to Verifying Jurisdiction and Calculation Method: In states where the fee schedule provides for regional adjustments, for example, New York, the Reference Guide lists criteria for determining the correct fee schedule rates to use in the MSA. CMS added an additional level of criteria and revised the table (9-1) that provides what is called an “Order of Precedence” in determining the zip code to utilize for pricing. CMS also added a table (9-2) clarifying pricing rules when claims are filed with U.S. Department of Labor Office of Workers’ Compensation Programs and states where no fee schedule is applicable.

MSPRP User Guide

The MSPRP is a web-based portal providing online access for attorneys, Medicare beneficiaries, insurers and authorized representatives to Medicare conditional payment information, the ability to dispute and/or appeal conditional payments and initiate the Demand Letter process among other tasks. Version 4.3 of the User Guide includes the addition of two new columns to the Case Results page providing for Case Status and Contractor, news fields which provide more relevant and updated information for claims awaiting response from the BCRC and three new warning pages to ensure information related to submitting redetermination, compromise or waiver requests is complete.

A notable improvement comes with the submission of Letters of Authority or Proofs of Representation allowing for third-party representatives, such as Tower MSA Partners, to act on behalf of insurers and Medicare beneficiaries. The process has been once a Proof of Representation or Letter of Authority is submitted through the portal the submitter would be required to wait a few days for the authorization to be authenticated. Updates to the MSPRP now allow authorizations to be uploaded to the portal with immediate authentication. As a result, the cuts down on the time to obtain Medicare conditional payment information.

Section 111 NGHP User Guide

CMS released Version 5.4 of the NGHP User Guide, which provides both policy and technical updates for the Section 111 Mandatory Insurer Reporting process. Notable updates are as follows:

  • As a result of Angel Pagan replacing Jeremy Farquhar as the EDI Department Director, new contact information is provided.
  • To ensure updates are applied to recovery cases appropriately, RREs are asked to submit the policy number uniformly with a consistent format. When sending updates, enter the policy number exactly as it was entered on the original submission, whether zeros or a full policy number (Section 6.6.5). 
  • The excluded and no-fault excluded ICD-10 diagnosis codes have been updated for 2019 (Appendix I and Appendix J)

Practical Implications

We do not anticipate the changes to the WCMSA Reference Guide to have any impact on either increasing or decreasing allocations on CMS-approved MSAs. As noted above, the updates to the MSPRP authorization authentication process will improve the turnaround time for obtaining conditional payment information. Finally, the Section 111 User Guide updates are all minor in nature and have minimal impact on the reporting processes.

If you have any questions regarding these updates, please contact Dan Anders at (888) 331-4942 or Daniel.anders@towermsa.com.

Two Tower Experts to Speak at NAMSAP Conference

October 1, 2018

Two of Tower’s MSP subject matter experts, Dan Anders and Rita Wilson, have been asked to speak at the upcoming National Alliance of Medicare Set Aside Professionals (NAMSAP) Annual Educational Conference. Dan will highlight trends in MSA reviews in a lively Q&A panel discussion on the new Workers’ Compensation Review Contractor, and Rita will be in her element –digging into data– when her panel compares NCCI MSA research findings with those of NAMSAP’s Data & Development Committee.   The conference will be held October 3-5 in Baltimore, Maryland.

Please see the following new release for more information:

https://www.businesswire.com/news/home/20180927005765/en/Tower-MSA-Partners-Dan-Anders-Rita-Wilson

TOWER PUBLISHES WHITE PAPER THAT EXPLORES LIABILITY MSAS

September 26, 2018

“Lawyers are concerned that CMS may seek reimbursement from attorneys, injured parties and even insurers—or simply deny payment for injury-related medical care,” said Dan Anders, Tower’s Chief Compliance Officer. “Navigating through the Fog: Medicare, Future Medicals & Liability Settlements” recaps CMS’s process to date and provides advice to settling parties who are currently handling liability settlements. See more:

Tower MSA Partners Publishes White Paper to Guide Settling Parties on Medicare and Future Medical Considerations

Tower Publishes White Paper on Medicare and Future Medical Considerations in Liability Settlements

September 12, 2018

light blue car rear-ending a dark blue car

CMS has signaled its intent to expand its voluntary WCMSA review program to liability. While a liability review policy has yet to be announced, CMS has made clear it expects the burden of post-settlement medicals should not be shifted to the Medicare program. However, the measures settling parties must take to consider Medicare’s interests in these future medicals is anything but clear. Given the lack of guidance, how should liability parties address this issue so as to not run afoul of Medicare?

White Paper: Navigating Through the Fog: Medicare, Future Medicals & Liability Settlements

To provide background and guidance on Medicare Secondary Payer considerations in liability settlements–particularly future medicals–Tower has published a White Paper entitled, Navigating Through the Fog: Medicare, Future Medicals & Liability Settlements. In this paper, Tower Chief Compliance Officer, Dan Anders, Esq., provides:

  • Background on the incremental process CMS has taken in regard to a LMSA review policy,
  • Explanation of CMS authority to implement a LMSA review program, and
  • Guidance to settling parties on considering Medicare’s interests in future medicals at time of settlement and whether an LMSA is appropriate.

Liability Settlement Solutions

In addition to the White Paper, Tower provides a full suite of Liability Settlement Solutions for insurers, claimants and attorneys, both plaintiff and defendant:

  • Medicare Conditional Payment Investigation, Dispute and Resolution
  • Medicare Advantage Plan Investigation, Dispute and Resolution
  • Social Security Disability Verification/Medicare Entitlement Search
  • MSP Compliance Opinion Letter
  • Liability Medicare Set-Aside (LMSA) Report
  • Medical Cost Projection
  • Life Care Plan

Our compliance consultants are available to help alleviate the uncertainty and risks surrounding future medicals and Medicare. We will analyze your claim, recommend the best approach and implement the most effective settlement solution.

If you have any questions, please contact Dan Anders, Chief Compliance Officer, at 888.331.4941 or daniel.anders@towermsa.com.

WorkCompCentral, Tower MSA Partners & Ametros Invite You to a Webinar on Optimizing MSAs: Before & After Settlement

September 4, 2018

Webinar announcment for Optimizing MSAs Before & After Settlement

The trusted source for the latest news in workers’ compensation, WorkCompCentral.com, hosts the leading innovators in Medicare Set-Aside development and administration, Tower MSA Partners and Ametros, in an upcoming webinar on the topic of Optimizing MSAs: Before & After Settlement. This free one-hour webinar will be presented by Tower Chief Compliance Officer Dan Anders, Ametros CEO Marques Tolbert, and will be held on Thursday, October 18, 2018 at 2 PM EDT.

Overview:

Settling work comp claims calls for a tricky balance. Payers want to limit the amount of money that is allocated to a Medicare Set-Aside and injured workers worry about running out of money for their work-injury related medical bills. How do you balance these competing interests? This webinar shows how pairing an intervention-driven MSA partner with a supportive professional administrator can produce a fair and reasonable MSA allocation and still protect and extend those allocation dollars over an injured worker’s life expectancy.

Attendees Will Learn How:

  • To balance the interests of payers and injured workers when settling claims.
  • An accurate drafting of the MSA provides its own cost savings.
  • To identify MSA cost drivers and how to apply clinical interventions to reduce them.
  • The right professional administrator can reduce the costs of medical and pharmacy care for the injured worker after settlement.
  • Professional administration can support an injured worker after settlement and protect and extend the life of the settlement

These lessons will help you drive claims to settlement and reduce those settlement costs while ensuring the injured worker has sufficient funds for future medical care. Don’t miss this opportunity to learn from these MSA experts!

Registration can be completed by following this link to the WorkCompCentral website or calling (866) 975-2667.

Thank you!

Tower MSA Partners Sponsored WCI-TV Highlights WC Leaders at the 2018 WCI Conference

Tower MSA Partners was pleased to once again sponsor WCI-TV at the recently concluded 2018 WCI Educational Conference. Following last year’s theme, which explored opioids in WC claims, this year Tower MSA featured interviews with the preeminent professionals in the Workers’ Compensation Industry on the topic of Knocking Down Barriers to Settlement of Claims.

Tower MSA invites you to watch these short and informative interviews from these leaders in the field of Workers’ Compensation:

Anne Alabach, Workers’ Compensation Department Manager, CPC Logistics

Quick take: “We try to be transparent with our drivers from the onset of a claim.”
See Anne’s full interview here.

Dan Anders, Chief Compliance Officer, Tower MSA Partners

See Dan’s interview introducing the WCI-TV theme of Knocking Down Barriers to Settlement of Claims here.
See Dan’s interview providing a synopsis of lessons learned from the WCI-TV interviewees here.

Kimberly George, Senior Healthcare Advisor, Sedgwick Claims Management Services

Quick take: “The earlier you can begin talking about settlement the better, we shouldn’t be afraid of that.”
See Kimberly’s full interview here.

Andy Olwert, President, Next Level

Quick take: “Treat the injured worker the way we would like to be treated”
See Andy’s full interview here.

Michael Stack, CEO, AMAXX, LLC.

Quick take: Michael Stack highlighted the importance of leveraging vendor partners to identify claims ready for settlement
See Michael’s full interview here.

Marques Torbert, CEO, Ametros

Quick take: Marques Torbert explains how being an advocate for the injured worker can knock down barriers to settlement.
See Marques’ full interview here.

Mark Walls, Vice President of Communications and Strategic Analysis, Safety National

Quick take: “The time to control your medical costs isn’t when you are trying to settle your claim, its well before that.”
See Mark’s full interview here.

Tower MSA Partners Sponsored WCI-TV Highlights WC Leaders at the 2018 WCI Conference

August 23, 2018

Tower MSA logo with logo of WCI TV for sponsorship banner

Tower MSA Partners was pleased to once again sponsor WCI-TV at the recently concluded 2018 WCI Educational Conference. Following last year’s theme, which explored opioids in WC claims, this year Tower MSA featured interviews with the preeminent professionals in the Workers’ Compensation Industry on the topic of Knocking Down Barriers to Settlement of Claims.

Tower MSA invites you to watch these short and informative interviews from these leaders in the field of Workers’ Compensation:

Anne Alabach, Workers’ Compensation Department Manager, CPC Logistics

Quick take: “We try to be transparent with our drivers from the onset of a claim.”
See Anne’s full interview here.

Dan Anders, Chief Compliance Officer, Tower MSA Partners

See Dan’s interview introducing the WCI-TV theme of Knocking Down Barriers to Settlement of Claims here.
See Dan’s interview providing a synopsis of lessons learned from the WCI-TV interviewees here.

Kimberly George, Senior Healthcare Advisor, Sedgwick Claims Management Services

Quick take: “The earlier you can begin talking about settlement the better, we shouldn’t be afraid of that.”
See Kimberly’s full interview here.

Andy Olwert, President, Next Level

Quick take: “Treat the injured worker the way we would like to be treated”
See Andy’s full interview here.

Michael Stack, CEO, AMAXX, LLC.

Quick take: Michael Stack highlighted the importance of leveraging vendor partners to identify claims ready for settlement
See Michael’s full interview here.

Marques Torbert, CEO, Ametros

Quick take: Marques Torbert explains how being an advocate for the injured worker can knock down barriers to settlement.
See Marques’ full interview here.

Mark Walls, Vice President of Communications and Strategic Analysis, Safety National

Quick take: “The time to control your medical costs isn’t when you are trying to settle your claim, its well before that.”
See Mark’s full interview here.

NAMSAP Bulletin Highlights Meeting with CMS on Liability MSA Reviews

August 16, 2018

man holding transparent icons of people with stakeholder in the center

Recently, the National Alliance of Medicare Set-Aside Professionals (NAMSAP) released a Special Edition Bulletin providing insight into a meeting between CMS and NAMSAP representatives on the topic of the planned expansion of the Workers’ Compensation MSA review process to liability MSA Reviews.  NAMSAP’s April 2018 meeting was one of several with stakeholder organizations.

Your writer was one of the NAMSAP representatives who had the privilege of meeting with CMS to hear and discuss how such a Liability MSA Reviews may work.   Mr. Tom Stanley, the Co-Chair of NAMSAP’s Liability Committee provided a summary of the following meeting highlights in the bulletin:

  • CMS stated they have an 18-month timeframe (from April 2018) before it rolls out a LMSA Review program.
  • The program would be voluntary.
  • CMS has indicated that their enforcement mechanism is the denial of services.
  • CMS felt strongly that the injured party must receive something (free and clear) through settlement.
  • CMS would not review an LMSA until Settlement has been reached.
  • CMS feels a LMSA is exclusively the responsibility of the plaintiff.
  • Regarding LMSA’s, CMS made it clear that the defendant(s), and their insurers, are not a target.
  • Medicare pricing of services was discussed.
  • CMS does not feel it can mandate professional administration.
  • CMS would publish a LMSA Reference Guide.
  • Eligibility remains the same as the current WCMSA system – Medicare beneficiaries or injured parties who have a reasonable expectation of Medicare eligibility within 30 months. Per statute, Medicare’s interest must be considered in every claim.
  • A workload threshold of $250,000 is anticipated – “NO SAFE HARBOR”. This level mirrors the $25,000 workload threshold for WCMSA’s.
  • For settlements between $250,000 and $750,000 threshold, CMS approval is available and encouraged by CMS. CMS would apply “a formula” to determine the LMSA amount. Starting with the total settlement amount, CMS would subtract certain expenses and apply the discount factor to total settlement.
  • Above $750,000 level is a full commutation. A traditional MSA would be prepared and, if submitted to CMS, evaluated by CMS for adequacy.

As Mr. Stanley advised, “everything discussed in the meeting was subject to change and related to liability Medicare Set-Asides only.”  I would like to emphasize that point as well.  You should not in anyway take the above points as final, rather they are points of discussion as CMS continues to listen to stakeholders and assess the best method for protecting Medicare’s interests in post-liability settlement injury-related medical.

Importantly, CMS realizes that in protecting those interests an eventual voluntary LMSA review process must continue to provide an incentive for the parties to settle their case.   Consequently, some type of apportionment to ensure the plaintiff receives a portion of the settlement monies is expected in any final review process.

NAMSAP will to continue to dialogue with CMS and also discuss with its membership, both through a webinar and at the annual conference, the points presented by CMS.  Given the launch of a CMS LMSA review process is not expected for some time, Tower MSA Partners will shortly be releasing a white paper on best practices for addressing future medicals in liability settlements.

If you have any questions or would like to discuss the topic of LMSAs further, please contact Dan Anders, Chief Compliance Officer, at 888.331.4941 or Daniel.anders@towermsa.com.

Related:

Liability Settlement Solutions

CWC & Risk Conference

August 15, 2018

CWC & Risk Conference

Monarch Beach Resort, Dana Point, CA

September 4th-7th, 2018

Tower MSA will be exhibiting at the CWC & Risk Conference September 4th-7th. We will be available to discuss how Tower’s technology-driven MSP compliance can benefit you. In addition, we have solutions to knock down the barriers to settling claims. Please stop by our booth or contact Hany at hany.abdelsayed@towermsa.com & 916-878-8062 to learn more.