While this is not an Abbott and Costello “who’s on first” routine, it’s just as confusing, but lacks the humor.
Our “SMART” readers already know that since September 6, 2011, The Center for Medicare/Medicaid Services (CMS) has not required reimbursement from third-party personal injury settlements of $300 or less.
The Strengthening Medicare and Repaying Taxpayers (“SMART”) Act of 2012, requires CMS to publish annually a threshold amount for personal injury settlements, judgments, awards or other payments which will not be subject to reimbursement of conditional payments and will not have to be reported. Accordingly, CMS issued an Alert on February 18, 2014, stating that the reimbursement threshold amount for 2014 is $1000, effective immediately. That means that settlements with Medicare beneficiaries of up to $1000 do not have to reimburse Medicare.
There are some lingering questions, however, like how settlements between $300 and $1000 reached between 1/1/4 and 2/18/14 will be treated. CMS promises further guidance in the near future. (But a note on the bottom of the Alert says it will pursue recovery of any demand issued before the date of the Alert.)
The current reporting threshold is $2,000 +. This current reporting threshold is scheduled to be reduced to $300 on October 1, 2014.
Stay tuned for more really “SMART” updates.
Contributed by Ranelle Meroney, Of Counsel, Chamberlain McHaney.