MARC Coalition Applauds Recent MSP Hearing Held by the Committee on Energy and Commerce Subcommittee on Oversight and Investigations

WASHINGTON, June 27, 2011 /PRNewswire-USNewswire/ -- The MARC Coalition applauded the Leadership and Members of the U.S. House of Representatives Committee on Energy and Commerce Subcommittee on Oversight and Investigations for their efforts to improve the Medicare Secondary Payer (MSP) system. The Subcommittee, led by Chairman Cliff Stearns (R-FL) and Ranking Member Diana DeGette (D-CO), held a June 22, 2011 hearing entitled "Protecting Medicare with Improvements to the Secondary Payer Regime." The standing-room only hearing focused on the problems created by the current MSP system and the Section 111 reporting process, the impact these problems are having on Medicare beneficiaries, stakeholders, and the Medicare Trust Fund, and potential solutions and improvements that should be implemented.

Two panels of public and private sector witnesses focused on the current MSP system and the "Section 111" process for reporting MSP claims to the government. The first panel included Ms. Deborah Taylor, the Director of Financial Management at the Centers for Medicare and Medicaid Services (CMS) and Mr. James Cosgrove, Director of Health Care in the Government Accountability Office (GAO). The second panel was made up of stakeholders affected by the MSP system, including Marc Salm, Vice President of Risk Management with Publix Super Markets, Inc., Scott Gilliam, Vice President with the Cincinnati Insurance Company, Jason Matzus, a partner with Raizman Frischman & Matzus, P.C., and Ilene Stein, Federal Policy Director with the Medicare Rights Center. Mr. Salm and Mr. Gilliam also represent their companies on the MARC Coalition.

Participating Members of the Subcommittee included Chairman Stearns, Ranking Member DeGette, Representative Tim Murphy (R-PA), Chairman Emeritus John Dingell (D-MI), Representative Michael Burgess (R-TX), Representative Phil Gingrey (R-GA), Representative Gene Green (D-TX), Representative Morgan Griffith (R-VA), Representative Jan Schakowsky (D-IL), and Representative Henry Waxman (D-CA). Members expressed bipartisan concern that the current MSP system is not run efficiently, may be placing unnecessary burdens on beneficiaries and stakeholders, and may ultimately be slowing or even reducing MSP reimbursements to the Trust Fund. In light of the large number of concerns that were raised, several Members requested that a follow-up hearing be held to allow Congress to continue to monitor the MSP program and ensure that progress is made in improving the system.

Marc Salm pointed out to the Committee some of the difficult and unintended consequences of the MSP system as it works today, noting the multiple difficulties that retailers and consumers have in settling and resolving claims due to CMS's inability to provide a final reimbursement figure to the parties so that they can timely close the claim and reimburse the Medicare Trust Fund. Mr. Salm also shared with the Committee some of the waste in the system, such as a reimbursement claim for $1.59 that cost Medicare more to pursue than it would ever recover. Mr. Salm noted for the Committee that his example was one of many that he had seen.

On behalf of MARC and Cincinnati Insurance, Scott Gilliam testified about some of the difficulties of the "Section 111" reporting system. He shared with the Congress the distortions being created by the severe penalties imposed for inadvertent failures to report settlements, and the difficulties in collecting and reporting beneficiary Social Security numbers. He showed the Committee the latest version of the reporting manual, noting that it should not take a manual the size of a phone book to advise the Agency of a settlement or payment. The Committee asked that the Manual be entered into the hearing record to demonstrate how difficult it was to navigate the process.

"The MSP system is a perfect example of a situation where Congressional oversight is needed to ensure that government programs are working efficiently and are not causing unintended negative consequences that ultimately harm taxpayers," noted Roy Franco, co-chair of the Coalition. "We are grateful to the Subcommittee for its attention to this important issue that impacts stakeholders and beneficiaries nationwide." Dean Pappas, MARC co-chair, also commented: "as the Congress noted, improving the MSP system would allow more money to return the Trust Fund faster, reduce burdens on industry, and ensure justice for injured beneficiaries – a true win, win, win."

The MARC Coalition has been advocating for legislation to streamline the MSP process, and has worked to support The Strengthening Medicare and Repaying Taxpayers (SMART) Act, H.R. 1063, introduced in the United States House of Representatives by Congressman Tim Murphy (R-Pa.) who was a vocal participant in Wednesday's hearing. The bi-partisan legislation has garnered 25 co-sponsors in the House of Representatives as well as 70 endorsements from businesses, associations and other supporters across the country since its introduction. "The SMART Act would address many of the problems discussed in this week's hearing," said Marc Salm, MARC Steering Committee Member and witness at the Wednesday hearing. "We looking forward to working with Congress to improve the MSP system to make it work more efficiently and effectively for everyone involved – Medicare, industry, and beneficiaries," he noted.

About MARC:

The Medicare Advocacy Recovery Coalition (MARC) was formed in September of 2008 to advocate on behalf of beneficiaries and affected companies for the improvement of the Medicare Secondary Payer (MSP) program. Formed by a group of affected stakeholders, the Coalition has been collaborating and developing strategic alliances with Congressional leaders and government agencies to focus on implementation of MSP reporting, and on the broader issue of MSP reform. MARC's membership represents virtually every sector impacted by MSP, including plaintiffs and defense attorneys, brokers, insureds, insurers, insurance and trade associations, self-insureds and third-party administrators. For more information on MARC and the SMART Act/H.R. 1063, please visit www.marccoalition.com.

SOURCE The MARC Coalition