The PAID Act – Encourages Transparency Surrounding Medicare Beneficiaries

On December 11, 2020, President Trump signed into law the Provide Accurate Information Directly (PAID) Act. The Act was designed to eliminate bureaucratic constraints and decades-old regulations that frequently resulted in unwarranted lawsuits and great confusion regarding the Medicare Secondary Payer (MSP) statute.
The PAID Act Provides Access to Data Previously Overlooked
The Medicare Advantage and Part D (the Plans) are not required to pay for health claims if other parties are available to remunerate or are reasonably expected to pay them. When Medicare pays for a claim, it must submit a request for the recovery to the primary plan believed to be responsible for payment before taking any further measures, such as litigation. While insurers may reach out to the Plans, they are not under any new legal obligations to coordinate benefits or get in touch with the Plans.
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