Washington, D.C. – The Property Casualty Insurers Association of America (PCI) recently applauded House leaders for introducing H.R. 5284, the bipartisan Medicare Secondary Payer and Workers Compensation Settlement Agreements Act of 2012 that includes important reforms for the Medicare Secondary Payer (MSP) system to help many injured workers expedite their claims process.
H.R. 5284 was introduced by Representatives Dave Reichert (R-WA) and Mike Thompson (D-CA) to address what is commonly called “Medicare set-aside” issues. The bipartisan effort aims to eliminate the significant and costly delays in the federal government’s review process for workers compensation claims of Medicare beneficiaries. This review process is conducted through the Centers for Medicare and Medicaid Services (CMS), the administrator for Medicare.
“This commonsense legislation will bring more clarity and consistency to the Medicare set-aside administrative process,” said Tom Litjen, PCI’s vice president of federal government relations. “We applaud Reps. Reichert and Thompson for their leadership on this important bill that will benefit injured workers, employers and insurers.”
In March, the Government Accountability Office (GAO) released a report that included recommended improvements in CMS administration of these workers compensation set-aside arrangements. Inefficiencies in the Medicare set-aside process delay payments for injured workers, drive costs for workers compensation payers and add unnecessary liabilities for employers and insurers.
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $179 billion in annual premium, 38.3 percent of the nation’s property casualty insurance. Member companies write 44.3 percent of the U.S. automobile insurance market, 31.6 percent of the homeowners market, 36.3 percent of the commercial property and liability market, and 42.6 percent of the private workers compensation market.