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Thursday, June 2, 2011

Should CMS be A Joint Payee in a Workers Comp Settlement?

How to reimburse The Centers for Medicare and Medicaid Services (CMS) is becoming a serious issue under the Medicare Recovery Act (MSP). Commonly know as Allocation Orders, these cases are emerging across the country and the Courts are denying attempts to merge the payments of the plaintiff's with that due to CMS.

In Zaleppa v Seiwell, 2010 PA Super 208, No. 2019 MDA 2009, Decided November 17, 2010, an appellate panel tossed out a request to have CMS named as a co-payee of the proceeds. Likewise, a Federal Court ruled that CMS's name should not appear on the same check as the one going to the plaintiffs ruling that the interests of the two parties were not similar. Bradley v Sebelius, 621 F.3d 1330 (11 Cir Ct Ap 2010) decided September 29, 2010.