The Centers for Medicare and Medicaid Services (“CMS”) posted an alert (the “Alert”) that confirms that there has been an extension, in certain cases, of the reporting trigger date for Mandatory Insurer Reporting (“MIR”) under Section 111 of the MMSEA. The Alert provides the new trigger dates based on gross settlement/judgment/other payment (“TPOC”)[ii] values for claims as follows:
The implementation timeline for reporting will be based on the TPOC amount. Below is a schedule of the new dates.
· For TPOCs between $5,000 and $25,000 – the trigger date is Oct. 1,2012 (with MIR starting the First Quarter, 2013)
· For TPOCs between $25,001 and $50,000 – the trigger date is July 1, 2012 (with MIR starting the Fourth Quarter, 2012)
· For TPOCs between $50,001 and $100,000 – the trigger date is April 1, 2012 (with MIR starting the Third Quarter, 2012)
· For TPOCs of $100,001 and above – the trigger date remains the same – Oct 1, 2011 (with MIR starting the First Quarter, 2012)
Below are examples of how these provisions will work:
· Example 1: If you settle a TPOC for $15,000 next week, you are not required to report that claim. You may voluntarily report, but mandatory reporting (and the penalties associated therewith) would not apply until you settled that $15,000 claim on or after October 1, 2012.
· Example 2: If you settle a $115,000 TPOC on or after October 1, 2011, mandatory reporting occurs no later than the submission window assigned during the first quarter of 2012.
The chart (in the Alert) is intended to let you know when a failure to report would trigger penalties. Penalties, therefore, could be levied if the RRE settles a TPOC of $100,000 or more, on or after October 1, 2011, and the RRE does not report under Section 111 during the reporting period in the first quarter of 2012.
The reporting threshold of $5,000 and under was not changed; therefore, CMS will reject any settlements voluntarily reported that are $5,000 and under