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Thursday, May 27, 2010

Amended Complaint Filed in CMS Recovery Action Against Law Firms


The Secretary of Health and Human Services (HHS) [The Centers for Medicare and Medicaid Services (CMS)] has filed a first amended complant Stricker case now pending in the US District Court in Alabama for recovery of Medicare Secondary Payments (MSP). 

The recovery action is based upon an alleged failure of the attorneys to honor a claim that CMS had filed in an underlying bankruptcy claim filed in 2003. The settlement provided for distributions to be paid from 2004 through 2013 by the defendants.

The initial complaint alleges that the US may initiate a claim for recovery of Medicare conditional payments when it "learns that payment 'has been or could have be made' under a liability insurance policy of plan. 42 C.F.R. Sec 411,24(b)."

The case is now under a briefing schedule for a pending Motion to Dismiss filed by the defendants. Plaintiff's response is due May 27, 2010 and the Defendant's reply is due June 10, 2010.