Four Years of WCMSA Data: 6 Numbers That Could Change Your MSA Strategy 

October 29, 2026

Four-year comparison of Tower MSA Partners’ CMS-approved WCMSA outcomes and CMS national averages from 2022 through 2025

One number can get your attention. Six numbers can change how you look at MSA strategy. 

For years, Tower MSA Partners has been tracking outcomes across Medicare Set-Aside preparation, clinical intervention, CMS review, pharmacy exposure, conditional payment resolution, and claim closure. 

The results raise some important questions. 

  • What if the first MSA isn’t necessarily the final MSA? 
  • What does it take to reduce an allocation while maintaining a defensible approach to CMS? 
  • How much can accurate pharmacy and clinical information change projected Medicare exposure? 
  • And what happens to settlement costs when Medicare’s interests are addressed early rather than at the end of the claim? 

Those are the questions behind Tower’s new Workers’ Compensation MSP Outcomes & Regulatory Insights Report and the blog series that follows. 

Tower MSA Partners’ four-year WCMSA data shows that early clinical intervention and strong Medicare Secondary Payer compliance can lower settlement costs without sacrificing CMS defensibility. From 2022 through 2025, Tower’s average CMS-approved WCMSA remained below the national average every year. 

In 2025, Tower’s average CMS-approved Workers’ Compensation Medicare Set-Aside was $18,477 lower than the CMS national average. Across 100 annual MSA submissions, that difference represents approximately $1.85 million in projected settlement exposure. 

 But the purpose of the Outcomes Report isn’t simply to highlight a difference between Tower’s results and a national benchmark. 

The more important question is why the results look the way they do. 

This blog series will move beyond the topline results to examine the decisions behind them and what claims leaders can apply to their own programs. 

What Four Years of WCMSA Data Show 

Tower’s average CMS-approved WCMSA remained below the CMS national average in each year reviewed: 

Year CMS Average WCMSA Tower Average Approved WCMSA
2022 $81,572 $59,051
2023 $86,453 $78,423
2024 $85,927 $69,867
2025 $86,169 $67,692

Source: Tower MSA Partners, Workers’ Compensation MSP Outcomes & Regulatory Insights Report, Section 2.3. Differences were calculated from the reported annual averages. 

The Six Numbers at a Glance 

  1. $18,477 lower: In 2025, Tower’s average CMS-approved WCMSA was $18,477 below the CMS national average. What does that difference tell us about MSA strategy—and what should claims professionals be asking before accepting an initial allocation? 
  1. 33% to 64% in clinical reductions: Tower’s average annual clinical reductions fell within this range. What can current clinical information reveal that may not be apparent from the records used to prepare an initial MSA? 
  1. 76% to 88% CMS alignment: Tower’s data showed substantial alignment between its reduced allocations and CMS outcomes. What does that tell us about the relationship between MSA savings and CMS defensibility? 
  1. 86% with $0 opioid allocation: In 2025, 86% of Tower’s CMS-approved WCMSAs contained no projected opioid cost., How do medication histories, physician engagement, and pharmacy oversight affect future Medicare exposure? 
  1. 82% of conditional payment demands reduced to $0: A Medicare conditional payment demand isn’t necessarily the final number that must be paid. What does Tower’s data tell us about the importance of investigating and resolving Medicare’s interests before settlement? 
  1. $9 million to $12 million in annual savings: Tower’s data shows the scale of savings associated with Physician follow-up and pharmacy optimization. What happens when these opportunities are considered across an entire claims portfolio rather than one claim at a time? 

The results are directional benchmarks, not promises for an individual claim or portfolio. Their value is showing where process and evidence can change an outcome. 

Why These WCMSA Findings Belong Together 

The first MSA can change settlement authority. Clinical intervention can change the allocation. CMS alignment indicates whether the approach remains defensible. Pharmacy decisions affect the long-term cost of a claim. Conditional payments and $0 MSA documentation influence risk at and after settlement. 

Looking at any one metric alone misses the larger point. The final financial outcome is shaped by how well these steps work together. 

That is the purpose of this series. Each article will take one decision point from the Outcomes Report and translate it into a practical question for claims, legal, compliance, and risk leaders. 

What the Outcomes Report Blog Series Will Cover 

1. Accepting the First MSA Is Often the Costliest Decision: What Four Years of CMS Data Reveals 

When should an initial MSA be accepted, and when do outdated medications, unsupported treatment, or incomplete records justify a second look? 

2. What the CMS Alignment Index Actually Tells You About Your MSA Strategy 

How can a program challenge preventable over-allocation without sacrificing predictable, defensible CMS outcomes? 

3. Opioid Exposure in MSAs: How 86% of Tower Cases Reached $0 and What It Takes to Get There 

What clinical documentation, physician engagement, and pharmacy oversight are required to ensure an MSA reflects the treatment actually expected? 

4. CMS No Longer Reviews $0 MSAs: What That Means for Your Post-Settlement Exposure 

CMS stopped accepting or reviewing $0 WCMSA proposals effective July 17, 2025. What does that change mean for documentation, governance, and post-settlement exposure? CMS outlines the policy on its official WCMSA What’s New page. 

5. 82% of Conditional Payment Demands Reduced to $0: The Post-Settlement Number Most Programs Ignore 

What should claims teams verify before treating a conditional payment demand as an amount that must be paid? 

6. MSP as Enterprise Risk: What 2022 to 2025 Performance Data Should Change About How You Budget for Settlements 

How should MSA, CMS, pharmacy, conditional payment, and reporting outcomes inform reserves, settlement authority, loss development, and capital planning? 

What Should Claims Leaders Do Now? 

Start by comparing Tower’s findings with your own program: 

  • Compare average and median approved WCMSAs with relevant CMS benchmarks. 
  • Measure how often clinical intervention changes an allocation and how much it saves. 
  • Track prescription drug and opioid exposure in approved WCMSAs. 
  • Review proposed-to-approved variance, development letters, and conditional payment outcomes. 
  • Determine whether Section 111 reporting and conditional payment work begin early enough to support settlement. 

Tower’s Medicare Set-Aside services and Medicare lien resolution connect these decisions through claim closure. 

Review the full Workers’ Compensation MSP Outcomes & Regulatory Insights Report and return to this page as each article is published. 

To compare your program with these benchmarks, submit a referral to Tower MSA Partners. 

About the Outcomes Report Data 

The report uses Tower MSA Partners’ aggregated, anonymized outcomes from WCMSAs and related MSP services between 2022 and 2025. CMS and market comparisons draw on published WCMSA statistics and related public information. The figures are intended to provide directional benchmarks and identify questions worth asking. They do not guarantee a particular reduction, approval, or settlement result for an individual claim or portfolio. 

Frequently Asked Questions About Four Years of WCMSA Data

What Is a WCMSA? 

A WCMSA allocates part of a workers’ compensation settlement for future Medicare-covered medical services related to the workers’ compensation injury, illness, or disease. 

What Is the Tower Outcomes Report Blog Series? 

This article introduces six follow-up posts examining what Tower’s 2022 through 2025 WCMSA and MSP outcomes mean for MSA cost, CMS alignment, pharmacy exposure, conditional payments, settlement strategy, and post-settlement risk. 

Does CMS Still Review $0 WCMSAs? 

No. Effective July 17, 2025, CMS stopped accepting or reviewing WCMSA proposals with a $0 allocation. However, CMS still allows $0 MSAs if they fit certain criteria. Parties should consult with Tower to determine whether their settlement fits into these guidelines. 

What are Medicare conditional payments? 

 A temporary payment made by Medicare for a beneficiary’s medical services when another primary insurance plan (such as liability insurance, no-fault auto insurance, or workers’ compensation) is responsible for paying but has not paid or will not pay promptly. 

Home » Tower MSA Partners

Tower MSA Partners Premier Webinar: Medicare Conditional Payments: What Adjusters and Attorneys Need to Get Right 

October 7, 2026

Tower MSA Partners Medicare conditional payments webinar featuring Dan Anders, Ada Lopez and Lou Porrazzo

From CMS conditional payment claims and Section 111 reporting to Medicare Advantage Plan recovery efforts, the Medicare recovery landscape has become increasingly complex. Mistakes can create problems long after a claim appears to be settled. 

Medicare Conditional Payments Webinar Details 

On Wednesday, October 21, 2026, at 2:00 p.m. ET, join Tower MSA Partners’s MSP Compliance Team, Dan Anders, Chief Compliance Officer, Ada Lopez, Director of MSP Compliance, and Lou Porrazzo, Chief Legal Officer, for a practical discussion of the Medicare recovery issues claims professionals need to understand today. This session will examine where problems arise and what adjusters and attorneys can do to address them before they delay settlement or remain unresolved after the claim is closed. 

Medicare Conditional Payment Recovery: Topics We’ll Cover 

• Background on Medicare conditional payment recovery processes in workers’ compensation and liability claims 

• How Section 111 reporting has changed Medicare’s ability to identify and pursue claims 

• Understanding Medicare recovery documents 

• How to review and dispute conditional payment amounts 

• The growing role of Medicare Advantage Plans and their recovery claims 

• What happens when a Medicare recovery claim surfaces after settlement 

• Practical steps adjusters and attorneys can take to address Medicare recovery before closing the file 

Register for the Medicare Conditional Payments Webinar 

A Q&A session will follow the presentation, and you can provide questions ahead of time at registration. Please click the link below and register today! 

Register for the Medicare Conditional Payments Webinar 

Top 10 Lessons from the Tower MSA Case Study Series 

October 1, 2026

Tower MSA Partners Top 10 Lessons from the MSA Case Study Series

Tower MSA Partners’ case study series reveals ten important lessons for claims professionals. Drawing from real-world cases, the series demonstrates how early intervention, clinical oversight, accurate documentation, and consistent review can improve Medicare Set-Aside and settlement outcomes. 

The cases have involved high-cost medications, outdated treatment plans, inaccurate allocations, conditional payment demands, amended reviews, and stalled legacy claims. 

Although every claim was different, one theme appeared repeatedly: meaningful MSA savings begin with accuracy. 

Here are the ten most important lessons from the series and what they mean for claims professionals. 

Lesson 1: Intervene Before MSA Preparation 

Early review can prevent unsupported treatment and pharmacy expenses from entering an allocation in the first place. 

In How Pre-MSA Triage Prevented $774K in Unnecessary Costs, Tower MSA Partners identified medical and pharmaceutical issues before the MSA was prepared. This early intervention prevented $774,583 in projected costs. 

What this means for claims teams:  

Do not wait until an MSA is ready for submission to question outdated treatment plans, medication histories, or unsupported projections. 

Lesson 2: Physician Peer Review Can Transform a High-Cost MSA 

Some medical questions require more than an administrative review. They require a qualified physician who can determine whether treatment remains clinically appropriate. 

In $1 Million Saved with Physician Peer Review, Tower identified overlapping therapies, high-cost medications, and treatment that had not been reevaluated for clinical necessity. Physician involvement, treatment changes, and supporting documentation ultimately produced more than $1 million in MSA savings. 

What this means for claims teams:  

Physician peer review can provide the clinical evidence needed to address complex, outdated, or duplicative treatment. 

Lesson 3: A Second Opinion Can Prevent an Expensive Mistake 

An MSA can look complete and still contain inaccurate information. 

In A $98K Mistake Avoided with a Second Opinion MSA Review, Tower found duplicate treatment, outdated information, and a discontinued high-cost medication in an allocation prepared by another vendor. Correcting these issues prevented approximately $98,000 in unnecessary funding. 

What this means for claims teams:  

Consider a second opinion MSA review when an allocation appears unusually high, includes substantial pharmacy exposure, or does not match the most recent medical records. 

Lesson 4: MSA Optimization Starts with Accuracy 

MSA optimization is not about cutting medically necessary care. It is about making sure every projected treatment, medication, frequency, and cost is supported by current evidence. 

In Trimming the Fat: $175K in Savings Through MSA Optimization, Tower identified duplicate entries, outdated treatment, replaced medications, and unsupported therapy projections. Correcting those discrepancies reduced the allocation by $175,000. 

What this means for claims teams:  

Sustainable MSA savings come from correcting inaccurate projections, not from targeting an arbitrary reduction. 

Lesson 5: Physician Follow-Up Can Fill Critical Information Gaps 

Medical records do not always clearly state whether a medication remains active, therapy is still recommended, or a treatment plan has changed. 

In $231K in Savings from Free Physician Follow-Up, Tower contacted the treating provider to confirm the claimant’s current treatment and medication needs. The resulting documentation supported a $231,487 reduction, and CMS accepted the revised allocation without development. 

What this means for claims teams:  

When the records do not answer an important clinical question, physician follow-up may provide the missing evidence. 

Lesson 6: Clinical Oversight Must Continue as Claims Change 

An MSA reflects the information available at one point in time, but claims continue to evolve. 

Medications are discontinued. Dosages change. Therapy frequency decreases. Providers revise their recommendations. Without continued review, an allocation can stop reflecting the claimant’s actual care. 

In $210K Saved: Why Clinical Oversight Is the Hidden MSA Advantage, Tower identified medications that were no longer prescribed, unsupported treatment, and frequencies that did not match current care. The review reduced the projected allocation by $210,143. 

What this means for claims teams:  

Clinical review should not be treated as a one-time event, especially when a claim has a long treatment history or multiple prescribing providers. 

Lesson 7: Updated Evidence Can Move Legacy Claims Forward 

 Legacy claims often remain open because the available information no longer provides an accurate picture of the claimant’s care. 

In From Backlog to Breakthrough: Reducing 43 Percent of Legacy Claims, Tower reviewed outdated treatment histories, discontinued medications, and old medical projections. By replacing outdated assumptions with current evidence, Tower helped move 43% of the payer’s legacy claim backlog toward resolution. 

What this means for claims teams: 

A claim that has been open for years is not necessarily impossible to settle. It may simply need an updated legacy claims settlement strategy. 

Lesson 8: Verify Every Conditional Payment Charge 

A Medicare conditional payment demand may include unrelated treatment, incorrect dates, duplicate charges, or services associated with broad diagnosis codes. 

In How Tower Reduced Conditional Payments to $0, Tower reviewed each charge against the claimant’s medical history and documented why unrelated services should be removed. Medicare accepted the dispute and reduced the conditional payment demand to zero. 

What this means for claims teams:  

Do not assume every charge listed in a conditional payment demand is the payer’s responsibility. Each line item should be reviewed and validated. 

Lesson 9: New Medical Evidence Can Support an Amended Review 

A CMS-approved MSA may no longer reflect the claimant’s medical needs if treatment changes after approval. 

In Amended Review Strategy Drops MSA by $101K, updated records showed that medications had been discontinued, therapy frequency had decreased, and previously projected testing was no longer recommended. Tower used this new evidence to support an amended review that reduced the MSA by $101,312. 

CMS allows for a one-time Amended Review MSA submission in situations like these, where medical costs have decreased since the original MSA was approved. 

What this means for claims teams:  

An existing approval should not end the review process when significant, documented treatment changes occur. 

Lesson 10: The Strongest Outcomes Come from a Coordinated Strategy 

The case study series shows that no single review method produces every result. The strongest outcomes came from combining early intervention, clinical oversight, current medical evidence, physician engagement, accurate documentation, and clear communication among everyone involved in the claim. 

Tower MSA Partners does more than identify potential errors or outdated treatment. Its clinical and compliance teams help translate those findings into documented, defensible actions that support cost containment and move claims toward settlement. 

What this means for claims teams:  

Better outcomes rarely come from one isolated step. They come from coordinating the clinical, compliance, claims, and settlement strategy from beginning to end. 

What These MSA Lessons Have in Common 

These cases involved different claims, medical histories, and settlement challenges. Yet the strongest outcomes shared several qualities: 

  • Claims were reviewed before outdated assumptions became permanent obstacles. 
  • Medical records were compared with projected future care. 
  • Clinical professionals evaluated treatment and pharmacy exposure. 
  • Treating providers were contacted when the records left important questions unanswered. 
  • Recommended changes were supported by documentation. 
  • Claims, clinical, legal, and compliance teams remained aligned. 
  • Savings resulted from accuracy, not from removing medically necessary care. 

This is the larger lesson from the series: MSA cost containment and Medicare compliance should not be treated as competing priorities. When an allocation accurately reflects current medical evidence, it can support both. 

Experience Behind the Results 

Tower MSA Partners provides Medicare Secondary Payer compliance and Medicare Set-Aside services to insurers, self-insured employers, third-party administrators, and attorneys. 

Tower’s clinical and compliance professionals combine medical review, regulatory knowledge, claims experience, and technology-enabled processes to help clients: 

  • Prepare accurate and defensible MSAs. 
  • Identify appropriate opportunities for MSA savings. 
  • Address complex treatment and pharmacy exposure. 
  • Resolve conditional payment demands and Medicare liens. 
  • Improve Section 111 reporting coordination. 
  • Move difficult and legacy claims toward settlement. 

The outcomes featured in this series reflect actual Tower MSA Partners case studies. Results vary based on each claim’s facts, medical evidence, documentation, and applicable CMS guidance. 

Explore the complete Tower MSA Partners case study library for more examples of these strategies in action. 

Put These MSA Lessons to Work 

If an inaccurate allocation, outdated treatment plan, conditional payment demand, or legacy claim is delaying settlement, the next step is to determine what the current evidence supports. 

Submit a referral or contact Tower MSA Partners to discuss the claim and identify the appropriate review strategy. 

Frequently Asked Questions About Medicare Set-Asides and Cost Savings 

What Is the Biggest Lesson from Tower MSA Partners’ Case Study Series? 

The biggest lesson is that MSA accuracy depends on current medical evidence. Early intervention, clinical oversight, physician input, and documentation validation can identify unsupported projections and produce a more accurate allocation. 

How Does Clinical Oversight Affect MSA Outcomes? 

Clinical oversight compares projected treatment and medications with the claimant’s documented medical needs. It can identify outdated, duplicative, discontinued, or unsupported care that may be inflating the allocation. 

When Should a Payer Request a Second Opinion MSA Review? 

A second opinion may be appropriate when an allocation appears unusually high, contains significant pharmacy exposure, conflicts with recent medical records, or was prepared before major treatment changes occurred. 

Can an Approved Medicare Set-Aside Be Changed? 

An approved WCMSA may qualify for an amended review when the claim meets current CMS requirements and significant changes are supported by updated medical or financial documentation. 

Why Is Documentation Important in an MSA Review? 

Documentation connects clinical findings to the final allocation. Clear, current medical evidence helps explain treatment changes, support accurate projections, and create a more defensible MSA. 

How Does Tower MSA Partners Help Reduce MSA Costs? 

Tower MSA Partners uses early claim review, clinical oversight, pharmacy analysis, physician engagement, documentation validation, and regulatory expertise to identify unsupported projections and prepare accurate, defensible MSAs. 

Who Does Tower MSA Partners Work With? 

Tower MSA Partners works with insurers, self-insured employers, third-party administrators, and attorneys to manage Medicare Secondary Payer compliance, reduce claim costs, and move complex claims toward settlement. 

Tower MSA Partners Premier Webinar: Five MSP Issues That Delay Settlement—and How to Solve Them

September 9, 2026

Tower MSA Partners webinar on five MSP issues that delay settlement, featuring Daniel Anders and Lou Porrazzo.

An MSA may be complete, approved, funded, and ready to go, but Medicare issues can still bring a workers’ compensation settlement to a halt.

Section 111 reporting inconsistencies. Unresolved conditional payments. ORM questions. Medicare-related issues that surface late in the process. And, too often, a lack of coordination among the parties.

These issues can turn a settlement that appears ready to close into a claim that sits unresolved for weeks or longer.

Webinar Details

On Wednesday, September 16, at 2:00 p.m. ET, join Tower’s Chief Legal Officer Lou Porrazzo and Chief Compliance Officer Dan Anders for a practical discussion of five MSP-related issues that commonly delay workers’ compensation settlements and what claims professionals can do to identify and resolve them earlier.

During This Webinar, We’ll Discuss

  • Section 111 Reporting Issues: How reporting inconsistencies can create problems at the settlement table and what should be addressed before settlement.
  • Conditional Payments: Why unresolved Medicare conditional payment claims can delay closing and how to resolve them proactively.
  • ORM Issues: How ongoing responsibility for medicals can complicate settlement and what needs to happen before ORM is terminated.
  • Coordination Among the Parties: How disconnects between the carrier, TPA, claimant, attorneys, MSA vendor, and other parties can create avoidable delays.
  • Late-Stage MSP Surprises: The issues that frequently emerge when everyone believes the claim is ready to settle and how to identify them earlier.

Register for the Webinar

A Q&A session will follow the presentation, and you can provide questions ahead of time at registration. Please click the link below and register today!

Register for the Five MSP Issues Webinar

Why Isn’t the Claim Settling? The MSP Issues Beyond the MSA that Can Derail a Settlement

September 2, 2026

By Louis Porrazzo, Esq., Chief Legal Officer, Tower MSA Partners and Claimify

For the past 25 years, the Medicare Set-Aside Arrangement (MSA) has been treated as the crown jewel of Medicare Secondary Payer (MSP) compliance. And rightfully so! An inappropriately high-dollar MSA can derail a settlement, an improperly prepared MSA may not survive review by the Centers for Medicare and Medicaid Services (CMS), and an insufficiently funded MSA can leave the injured worker in a Medicare quagmire.

During that same timeframe, the industry has become reasonably proficient at ensuring that an MSA is appropriately calculated, that an MSA submitted to Medicare has a strong likelihood of approval near the submitted amount, and that the MSA is properly funded and administered.

And yet, parties still routinely encounter MSP-related issues that prevent or delay settlement.  Even when an MSA has been prepared, submitted, approved or indemnified, and funding and administration have been arranged, the parties still carry ongoing MSP obligations that must be met.

Improper Section111 reporting, failure to properly address conditional payments, and inconsistent claim information can derail a settlement at the eleventh hour. Individually, each of these issues can be managed without much difficulty. The challenge is that they are rarely identified early enough to be handled as routine compliance work.

MSP compliance must be fully integrated into all aspects of claims handling. If the first meaningful discussion about Medicare occurs during settlement negotiations, the parties are already at a disadvantage.

Here are five MSP-related issues to address before the settlement becomes derailed:

1. Section111 Data is Inconsistent

The handling adjuster is responsible for maintaining accurate claim information, ensuring appropriate ICD codes are used, and paying only for treatment and services for which the payer is responsible. Defense counsel may be litigating the accepted body parts, correct date of injury, causal relationship, and other aspects of the claim. And some organizations have entire departments or outside vendors dedicated to Medicare reporting. Their efforts should be aligned. Too often, they are not.

Dates of injury, ICD codes, ORM (Ongoing Responsibility for Medicals) status and termination dates, TPOC (Total Payment Obligation to the Claimant) information, and other reporting data should accurately reflect the claim being settled. This has become even more important as CMS has expanded Section111 reporting requirements to include WCMSA information and increased its focus on reporting timeliness and accuracy. CMS began quarterly Section 111 reporting audits in the first quarter of 2026, sampling accepted records and assessing civil money penalties where ORM assumption or TPOC was reported outside the required timeframe. Reporting data that was merely untidy a year ago now carries a direct financial consequence.

Inconsistent data can create significant problems. Multiple Medicare records may be established or associated with a claim, potentially triggering unnecessary recovery activity. Inaccurate information can complicate settlement documentation and reporting. And improper coding may cause confusion regarding which injuries and medical treatment are actually related to the workers’ compensation claim.

Before the parties settle, they should ensure that what is reported under Section111 matches the claim that is about to close.

2. Ambiguity Surrounding ORM

When an accepted workers’ compensation claim is settled and the payer’s responsibility for medical treatment ends, ORM generally needs to be terminated, and applicable TPOC information reported under Section 111. The key question is whether ORM should have been accepted in the first place.

  • When did responsibility for medical treatment begin?
  • Was it ever accepted or denied?
  • Does it remain open?
  • Is there a legitimate basis for terminating ORM?
  • If so, when should the termination be reported?

These decisions should not be made automatically simply because a claim is established at the front end or the claim is settling on the back end. Inaccurately accepting ORM can create problems beyond Section111 reporting itself, including unnecessary conditional payment recovery efforts and confusion regarding accepted injuries.

Settlement is a good time to review Section111 and ORM activities, but it should not be the first time these questions are asked.

3. Forgotten Conditional Payments

Far too often, conditional payments are an afterthought.  The industry has become very good at knowing how to prepare an MSA, how to obtain approval when submission is appropriate, how to fund it, and how to administer it.  But conditional payments still go unaddressed until the last minute. 

CMS may seek reimbursement for payments it believes are related to the workers’ compensation claim, including charges that the payer believes are unrelated or otherwise not their responsibility. Failing to investigate and address those payments early can lead to unnecessary reimbursement demands and delays in bringing the claim to final resolution.

Organizations can save money by addressing conditional payments in a timely fashion. Just as importantly, accurate Section 111 reporting and proper conditional payment resolution can reduce confusion over responsibility for medical treatment. These issues can usually be resolved, but resolution takes time.  A conditional payment issue discovered months before settlement is a compliance task. The same issue discovered days before settlement can become a settlement problem.

4. When Everyone Owns MSP Compliance, No One Does

It is important for all parties to align on MSP-related activities and expectations.  The adjuster and defense attorney should be in lockstep when it comes to handling the MSA, conditional payments or Section 111 questions.  Both parties should have a working relationship with the MSP vendor of choice.  And the claimant’s counsel should understand their obligations in denied workers’ compensation cases.

MSP compliance involves multiple interconnected obligations, and treating each one as an independent transaction creates opportunities for things to be missed. Each party should know which tasks belong to them. Before settlement discussions begin, parties should understand:

  • What is accepted and what remains denied or disputed?
  • Is the claimant Medicare eligible or reasonably expected to become Medicare eligible?
  • Is §111 reporting accurate, including ORM status?
  • Who is responsible for resolving conditional payments?
  • What is the strategy for MSA preparation, funding, and administration?
  • If an MSA is appropriate, will the parties pursue CMS submission or utilize another risk-management approach such as indemnification?

While different people will be handling different aspects of MSP compliance, it is important to have one person or department leading the charge and bringing all parties together to ensure MSP compliance.

5. MSP Protocol vs. “Getting an MSA”

Every entity should have a defined MSP protocol in place to ensure compliance. The mindset should shift from “getting an MSA” to “complete MSP compliance.” Any settlement strategy should include Medicare from the beginning.

Is there a discrepancy in treatment? Address it during claims handling so it doesn’t become an issue at settlement.

Is the case denied? Do not automatically assume that ORM should be reported. Analyze whether responsibility for medical treatment has actually been accepted and report accordingly.

Is the claimant treating body parts unrelated to the injury? Do not pay for that treatment. Those payments can inflate the MSA and complicate CMS approval.

By the time everyone has agreed on a settlement number, expectations have been created and momentum matters. An unexpected Medicare issue at that stage does more than increase costs. It can destroy that momentum and prevent the settlement from closing.

Final Thoughts

MSP compliance should be built into the overall claims strategy from the beginning. Section 111 reporting, conditional payments, future medical exposure, and settlement all intersect, and problems in one area can quickly affect another. A well-defined MSP protocol gives the parties an opportunity to identify and resolve those issues while there is still time to keep the claim moving toward settlement.

The best time to discover a Medicare problem is when there is still time to do something about it. When the claimant wants to settle, counsel agrees to settlement terms, the adjuster has authority, and the MSA is complete, the last thing anyone wants to hear is “We still have a Medicare issue.” A well-built MSP Protocol is what keeps that sentence out of the room.

On Wednesday, September 16, at 2:00 p.m. ET, join Tower’s Chief Legal Officer, Lou Porrazzo, and Tower’s Chief Compliance Officer, Dan Anders, for a practical discussion of five MSP-related issues that commonly delay workers’ compensation settlements and what claims professionals can do to identify and resolve them earlier.

Register for the webinar today!

Frequently Asked Questions About MSP Issues That Delay Settlement

Why do workers’ compensation settlements get delayed by Medicare issues?

Most delays come from issues outside the Medicare Set-Aside itself. Inconsistent Section 111 data, unresolved conditional payments, and unclear ORM status surface late in negotiations, when the parties have already agreed on a number and have no time to fix them.

What Section 111 data should be verified before settlement?

Confirm that the date of injury, ICD codes, ORM status and termination date, and TPOC information all match the claim being settled. Since April 2025, WCMSA amounts must also be reported. Mismatched data can trigger duplicate Medicare records and unnecessary recovery activity.

When should ORM be terminated on a workers’ compensation claim?

ORM generally terminates when the payer’s responsibility for medical treatment ends, which usually coincides with settlement. The more important question is whether ORM should have been accepted in the first place, because accepting it in error creates conditional payment exposure that did not need to exist.

Who is responsible for resolving conditional payments in a settlement?

Responsibility should be assigned explicitly before settlement discussions begin, typically to the adjuster, defense counsel, or the MSP vendor. When no one owns it, conditional payments surface days before closing, at which point they become a settlement problem rather than a compliance task.

Does an approved MSA mean the claim is MSP compliant?

No. An approved and funded MSA addresses future medical exposure only. Section 111 reporting accuracy, ORM status, and conditional payment resolution are separate obligations that continue independently and can hold up a settlement on their own.

Louis Porrazzo, Esq. serves as Chief Legal Officer for Tower MSA Partners. A recognized authority on Medicare Secondary Payer (MSP) compliance, Lou is a frequent national speaker and author known for translating complex Medicare compliance issues into practical strategies for claims professionals, attorneys, insurers, and self-insured organizations. He is licensed to practice law in the Commonwealth of Massachusetts and brings extensive experience in MSP compliance, workers’ compensation, and general liability defense. Outside of his professional work, Lou chairs the Kids’ Chance of Massachusetts Fundraising Committee and is a CrossFit Level 2 Certified Trainer. He can be reached at Louis.Porrazzo@TowerMSA.com.

Amended Review Strategy Drops MSA by $101K

July 20, 2026

Tower MSA Partners amended review case study showing $101,312 in Medicare Set Aside savings

In Tower MSA Partners’ last post, How Tower Reduced Conditional Payments to $0, we explained how Tower reduced Medicare conditional payments to zero through detailed review and accurate documentation. This month, we focus on a case where an amended review dramatically changed the outcome of an already CMS-approved MSA. A payer requested help after receiving an unexpectedly high counter-higher from CMS. Through an amended review supported by updated medical records and clinical oversight, Tower corrected outdated projections and reduced the MSA by $101,312. This case shows how persistence and accuracy create better settlement outcomes.

Identifying the Problem

After an MSA had been submitted and approved by CMS, new medical records revealed important changes in the claimant’s treatment plan. Several medications had been discontinued, therapy frequency had decreased, and previously projected diagnostic testing was no longer recommended. As a result, the approved allocation no longer reflected the claimant’s current treatment needs and overstated projected future medical costs.

The allocation no longer aligned with the claimant’s current medical condition or ongoing treatment plan. Moving forward with settlement based on outdated projections would have resulted in funding medical expenses that were no longer supported by the available clinical evidence. The payer needed an amended review to ensure the MSA accurately reflected current medical.

Turning New Medical Evidence Into $101K in Savings

Tower MSA Partners conducted a comprehensive amended review to evaluate the newly available medical information and determine its impact on future medical cost projections.

The clinical team analyzed updated medical records, treatment histories, prescription information, and provider recommendations. During the review, several medications included in the original allocation were confirmed as discontinued and no longer medically necessary. Therapy projections were adjusted to reflect the claimant’s current treatment frequency, and future diagnostic testing recommendations were updated based on the most recent provider documentation.

Using this information, Tower prepared an Amended Review Medicare Set Aside allocation supported by detailed clinical rationale and updated medical evidence. The amended submission clearly demonstrated why the original projections no longer reflected the claimant’s current treatment needs and how the revised allocation more accurately represented future medical exposure.

CMS reviewed the amended Medicare Set Aside submission and accepted the updated allocation, resulting in a reduction of $101,312.

Outcome

  • MSA Reduction: $101,312
  • Strategy: Amended Review
  • Key Findings: Discontinued medications, reduced therapy frequency, and updated diagnostic recommendations
  • CMS Result: Revised allocation accepted
  • Impact: More accurate funding and lower settlement costs

Collaboration and Communication

Successful amended reviews require more than updated medical records. They also depend on clear communication among stakeholders involved in the settlement process.

Tower MSA Partners worked closely with the claims professional to review the updated treatment information and ensure the rationale behind each amendment was thoroughly documented. When necessary, providers and defense counsel were consulted to verify treatment changes and eliminate potential discrepancies before resubmission.

This collaborative approach helped streamline the review process and provided CMS with a well-supported allocation backed by current medical evidence. Because the documentation was complete and clearly explained, CMS accepted the revised allocation without requesting additional information.

Why Amended Reviews Matter

Workers’ compensation claims are dynamic. Treatment plans change, medications are discontinued, and providers adjust recommendations based on a claimant’s progress. When those changes occur after an MSA has been prepared or submitted, failing to update the allocation can result in unnecessary funding and inflated settlement costs.

Amended reviews help ensure that Medicare Set Aside allocations remain accurate, defensible, and aligned with current medical evidence. By incorporating updated treatment information before settlement, payers can avoid overfunding future medical expenses while maintaining compliance with CMS requirements.

The amended review identified treatment projections that no longer reflected the claimant’s current medical status. Without the review, the payer would have funded more than $101,000 in projected medical costs that were no longer supported by the treatment record.

Key Takeaways

  • Amended reviews help ensure Medicare Set Aside allocations reflect current medical necessity.
  • Updated medical records can reveal opportunities to reduce future medical cost projections.
  • Discontinued medications and changes in treatment frequency can have a significant impact on MSA allocations.
  • CMS accepts amended submissions when the changes are supported by credible medical evidence and documentation.
  • Proactive clinical oversight helped reduce this allocation by $101,312 while maintaining compliance and settlement readiness.

Frequently Asked Questions About Amended Reviews

What is an amended review?

An amended review updates a previously CMS-approved MSA allocation when new medical information becomes available that affects future medical cost projections.

Why are amended reviews necessary?

Claims evolve over time. Updated medical records may reveal discontinued medications, reduced treatment frequency, or changes in provider recommendations that should be reflected in the allocation.

How does an amended review create savings?

 An amended review corrects outdated projections and aligns the allocation with current medical necessity. This can reduce unnecessary funding while maintaining compliance with CMS guidelines.

Can an MSA be changed after it has been approved by CMS?

Yes. If significant medical updates occur after submission, an amended review may be appropriate. Updated medical records, physician recommendations, and treatment changes can justify a revised Medicare Set Aside allocation.

 

 

How Tower Reduced Conditional Payments to $0

June 23, 2026

Image of Tower MSA Partners Why Case Studies Matter series, Blog 9 Conditional Payments Reduced to Zero

In Tower MSA Partners’ last post, From Backlog to Breakthrough, Reducing 43 Percent of Legacy Claims, we explored how structured review helped a payer resolve 43% of its legacy claim backlog. This month, we focus on a different but equally important component of Medicare compliance. A payer requested Tower MSA Partners’ assistance with Medicare conditional payments after receiving an unexpectedly high reimbursement demand. Through detailed investigation, clinical review, and strategic communication with Medicare, Tower reduced the conditional payment amount to zero. This case shows how expertise in documentation and compliance protects payers from unnecessary financial exposure.

Identifying the Problem

Medicare conditional payments arise when Medicare covers medical treatment that may be related to a worker’s compensation or liability claim. In this case, Medicare issued a demand letter listing charges that totaled several thousand dollars. Tower’s analysts reviewed the itemized charges and immediately identified discrepancies. Many of the listed treatments were unrelated to the claimed injury, some were incorrectly dated, and others were duplicates. Without intervention, the payer would have reimbursed Medicare for services that were not their responsibility.

The Conditional Payment Resolution Solution

Tower MSA Partners performed a complete conditional payment review. Analysts compared each charge to the claimant’s medical history, verified diagnoses, and confirmed which treatments were causally related to the claimed condition. The review found multiple services that did not match the injury, unrelated emergency visits, and unrelated diagnostic imaging. Tower prepared a detailed dispute package explaining why each unrelated charge should be removed. Medicare accepted the documentation and eliminated every disputed line item, reducing the conditional payment amount to zero.

Collaboration and Communication

Tower communicated closely with the claims professional throughout the process, providing updates on findings and ensuring that the payer understood the basis of each dispute. The clinical team also prepared clear documentation for Medicare that supported the request for removal of unrelated charges. This level of communication helped streamline the review process and ensured the payer had complete visibility of the findings. Because the documentation was thorough and aligned with Medicare standards, the dispute was accepted without further development.

Why Oversight Makes the Difference

Conditional payments require precise evaluation because even a single unrelated treatment can create unnecessary financial exposure. Many payers reimburse Medicare due to uncertainty about which charges apply. Tower’s clinical oversight identifies unrelated treatment, strengthens dispute documentation, and prevents avoidable reimbursement. This case shows how expert review transforms a costly demand into a compliant resolution that protects the payer and ensures accurate reporting.

Lessons Learned

  1. Conditional payment reviews must be detailed to identify unrelated charges.
  2. Accurate documentation leads to successful Medicare disputes.
  3. Collaboration with claims professionals ensures clarity and confidence.
  4. Strategic oversight prevents unnecessary reimbursement. This case resulted in a zero-dollar conditional payment demand.

Results That Reflect Expertise

Through thorough review and precise documentation, Tower reduced Medicare conditional payments to zero. The payer avoided unnecessary expenses and gained confidence that the claim was handled accurately and compliantly. Tower MSA Partners continues to demonstrate the importance of clinical insight, administrative precision, and regulatory expertise in managing Medicare related obligations.

FAQs

What are Medicare conditional payments?

Medicare conditional payments occur when Medicare pays for treatment that may be related to a compensable claim and seeks reimbursement from the responsible payer.

Why do conditional payment demands include unrelated charges?

Medicare often uses broad diagnosis codes, which can pull in unrelated treatment unless each line item is reviewed.

How does Tower reduce conditional payments?

Tower verifies each charge, identifies unrelated services, and prepares detailed dispute documentation for Medicare.

Can Medicare reduce conditional payments to zero?

Yes. When documentation proves that charges are unrelated to the claim, Medicare may remove the items entirely.

 

Tower MSA Partners Section 111 Reporting Premier Webinar 2026

June 3, 2026

Section 111 Reporting Webinar

Understanding ORM, TPOC, and Common Reporting Pitfalls

The introduction of WCMSA fields to the Section 111 reporting process has rightly been forefront over the past year. However, confusion remains when it comes to the traditional reporting requirements of ORM reporting, ORM terminations and TPOC reporting.

Webinar Details

On Wednesday, June 24 at 2:00 p.m. ET, join Tower’s Chief Compliance Officer, Dan Anders, and VP of Technology, Anthony Segrich, who will break down the practical application of Section 111 reporting requirements. 

Who Should Attend

This webinar will provide practical, real-world guidance that adjusters can immediately apply to their claims handling and settlement practices.  Attorneys and others involved in the settlement process will also gain a better understanding of how Section 111 reporting affects Medicare conditional payment recovery and post-settlement medical considerations.

You will learn:

  • When claims should be reported to CMS
  • Common ORM reporting mistakes and misconceptions
  • When ORM can — and cannot — be terminated
  • Understanding TPOC reporting triggers and timing
  • Reporting considerations in denied claims and disputed settlements
  • Best practices to reduce compliance risk and reporting errors

A Q&A session will follow the presentation. Questions may be submitted in advance during registration.

Please reserve your spot today.

Click to register.

CMS Solicits Feedback on ORM Termination in Section 111 Reporting

June 1, 2026

cms orm termination and section 111 reporting compliance

In a May 26, 2026, letter to the stakeholder community, the Centers for Medicare and Medicaid Services (CMS) requested feedback on the voluntary termination of Ongoing Responsibility for Medicals (ORM), as it relates to Section 111 reporting.  Per the letter:

Currently, Chapter III, Section 6.3.2 – ORM Termination, provides various scenarios under which an RRE may terminate their ORM status when such status appropriately ends. DMPO desires industry feedback on whether the current parameters are appropriate, reasonable, and sufficient.

DMPO requests that any person or entity desiring to share feedback, ideas, concerns, or questions do so no later than June 9, 2026. Feedback need not be in any formal format or follow any particular parameters. DMPO is unable to guarantee a direct response to all feedback but will take all submissions into consideration as the policy around ORM termination is reviewed. Comments received after the above date will still be considered for future enhancements.

All submissions should be e-mailed to the new DMPO-managed mailbox relating to all Coordination of Benefits and Recovery (COB&R) inquiries:

COBR@cms.hhs.gov

ORM termination is critical not only to ending a payer’s responsibility for payment of injury-related medical care but also to allowing the injured claimant to access medical benefits for injury-related care. Even when care is not injury-related, an open ORM can still result in Medicare denying payment for medical care based on the false assumption that the treatment is related to the injury.

Tower MSA Partners will provide feedback to CMS. We encourage our client partners to share their feedback or reach out to us so we can relay your comments and concerns to CMS. Please contact Tower’s Chief Compliance Officer, Dan Anders, at daniel.anders@towermsa.com.

CMS Section 111 Update: Key Changes to ORM Termination and TPOC Reporting

May 13, 2026

The Centers for Medicare and Medicaid Services (CMS) has released an update to the Section 111 NGHP User Guide (Version 8.4), introducing important clarifications related to:

  • Ongoing Responsibility for Medicals (ORM)
  • Total Payment Obligation to Claimant (TPOC) reporting
  • Wrongful death claims
  • Medicare Set-Aside (MSA) reporting in multi-defendant cases.

While many of these updates reinforce existing practices, several changes carry meaningful compliance implications for Responsible Reporting Entities (RREs).

Expanded Guidance on ORM Termination

CMS updated Chapter III, Section 6.3.2 of the Policy User Guide to clarify acceptable circumstances for terminating ORM.

The revised language states:

“Where the insurer’s responsibility for ORM has been terminated per the terms of the pertinent insurance contract, such as maximum coverage benefits, or any other reason that is not prohibited by the terms of the insurance contract or applicable state or federal law.”

CMS also added:

“Note: An insurer’s refusal to accept ORM, or to continue to accept ORM, is a valid ORM termination reason, provided that the refusal is permitted by applicable state or federal law and the terms of the insurance contract.”

What This Means

This update introduces helpful flexibility, but it does not create new substantive grounds for terminating ORM. Nonetheless, RREs may feel more comfortable with terminating ORM based on the following:

  • Claim denials
  • Independent Medical Examination (IME) results
  • Maximum Medical Improvement (MMI) determinations
  • Claimant non-compliance (e.g., refusal of treatment or IME)

In short, CMS has clarified when termination may be recognized, not expanded the legal basis for termination.

Clarification of TPOC Date in Workers’ Compensation Settlements

CMS also added a helpful example in Section 6.4 of the Policy Guide regarding the proper TPOC date to use when commission approval of a workers’ compensation case is required:

“Example: The parties to a workers’ compensation case execute an agreement regarding the claim on 01/20/2026. The state requires the workers’ compensation commission to approve the final settlement details and said approval occurs on 02/05/2026.”

According to CMS, the TPOC date is February 5, 2026, because it was the later of:

  • The date the agreement was fully executed
  • The date the court or commission approved the agreement.

What This Means

For many workers’ compensation settlements, this confirms what has already been standard industry practice: the commission approval date will be the TPOC date.

Updated Approach to Wrongful Death Claims

CMS also modified the language in Section 6.5.1.4 related to wrongful death claims.

Previously, CMS stated that wrongful death settlements were not reportable if they:

  • Did not claim or release medicals, and
  • Did not have the effect of releasing medicals

The revised language now emphasizes Medicare recovery rights and documentation.

“Note: In order for the wrongful death theory of liability to preclude Medicare from recovering from a settlement, judgment, award, or other payment, complete documentation must be provided that shows what was claimed and released or had the effect of being released. Additionally, a citation to the appropriate state statute or case law that precludes recovery from a wrongful death settlement should be included with any such dispute or appeal.

The prior language was:

Settlements, judgments, awards, or other payments entirely under the wrongful death theory of liability, which do not claim and release medicals, or have the effect of releasing medicals, are not required to be reported because Medicare would have no recovery claim against such a payment.

What This Means

It is unclear why CMS modified the language in this section, which shifts the focus from the release of medicals to recovery; however, the underlying requirements remain: a settlement is not reportable unless medicals are claimed and released as part of that settlement.  This includes a wrongful death settlement.

TPOC Reporting in Multi-Defendant Cases

CMS also clarified reporting requirements for multiple settlements involving the same claimant. The updated guidance confirms that where liability is proportionate or several, but not joint and several, each RRE should report only its own TPOC amount.

CMS added the language in bold:

Multiple settlements involving the same individual – If there will be multiple TPOCs submitted for the same individual, for the same incident, but reported by different RREs (proportionate or several liability but not joint and several), the records shall reflect each RRE’s unique TPOC amount and not the aggregate TPOC the beneficiary will be receiving. If more than one RRE has assumed responsibility for ongoing medicals, Medicare would be secondary to each such entity.

Example

If:

  • The total settlement is $100,000, and
  • One RRE’s share is $25,000

Then that RRE reports a TPOC amount of $25,000 — not the full settlement amount.

What This Means

This reinforces that reporting obligations where there is not joint and several liability are entity-specific, aligning each RRE’s reporting with its actual financial responsibility and avoiding over-reporting of settlement amounts.

The update helps avoid:

  • Over-reporting settlement amounts
  • Duplicate reporting
  • Confusion around proportional liability scenarios

Medicare Set-Aside (MSA) Reporting Clarifications

CMS also revised guidance regarding WCMSA reporting in cases involving:

  • Multiple dates of injury, or
  • Multiple defendants

CMS updated with new information in bold:

“As it relates to multiple dates of incident, an MSA, if applicable, shall be reported under the earliest date of incident, if only one TPOC is made. If multiple TPOCs are submitted, but only one MSA is reported, the MSA shall be reported on the first TPOC only. Where there are multiple defendants (RREs) reporting each RRE must report the total MSA Amount—not just its assigned or proportionate share. System logic exists such that only the first reported MSA amount will be applied for purposes of coordination of benefits.”

The updated language states that where multiple RREs are reporting, each RRE must report the full MSA amount — not merely its proportionate share.

CMS further notes that system logic applies only the first reported MSA amount for coordination of benefits purposes.

What This Means

This creates a notable distinction between:

  • Financial responsibility, and
  • Reporting obligations

Even where liability is divided, all RREs are required to report the entire MSA amount, making coordination among defendants critical to ensure consistency and avoid confusion.

Example (using the scenario above)

Assume:

  • Total settlement = $100,000
  • One RRE’s share = $25,000
  • WCMSA amount = $50,000

The RRE would report:

  • TPOC Amount: $25,000
  • WCMSA Amount: $50,000

Because all RREs must report the full MSA amount, coordination among defendants is critical to ensure consistency and avoid reporting discrepancies.

Final Thoughts

These updates do not fundamentally change Section 111 reporting—but they do tighten expectations around documentation, consistency, and defensibility.

RREs should review internal protocols, particularly around:

  • ORM termination decisions
  • Wrongful death claim handling
  • Coordination in multi-defendant settlements

Small missteps in these areas can create outsized compliance risk.

If you have any questions, please reach out to Tower’s Chief Compliance Officer, Dan Anders, at daniel.anders@towermsa.com .