Section 111 adds mandatory reporting requirements for RREs who make payments to Medicare beneficiaries from liability insurance (including self-insurance), no-fault insurance, or workers compensation. We note that payments are considered to be “settlements, judgments, awards, or other payment(s).”

The registration requirement commences May 1, 2009. As noted, the definition of entities who are obligated to report is quite broad. It is imperative to determine if these obligations apply to you. Section 111 mandates that the reporting obligations apply to an “applicable plan.” An applicable plan is defined by CMS as, “…the following laws, plans, or other arrangements, including the fiduciary or administrator for such law, plan, or other arrangement:

• (a) Liability insurance (including self-insurance)
• (b) No-fault insurance
• (c) Workers compensation laws or plans

The upshot of these definitions is that an applicable plan is going to be considered a Responsible Reporting Entity (RRE) with requirements for registration as such commencing May 1, 2009.

Please note that the government has provided a list of liability coverage that is subject to the reporting requirement and this includes, but is not limited to, the following:

• Homeowners Liability
• Automobile Liability
• Product Liability
• Malpractice Liability
• Uninsured and Underinsured Motorist Liability

Once the registration process is completed – please note that is a process and not a single event – the RRE will commence the compliance and testing protocols mandated by Section 111.

The Centers for Medicare and Medicaid Services (CMS) are charged with the responsibility, among other things, to ensure that covered items and services available to Medicare beneficiaries are paid in the appropriate manner. CMS has an interest in minimizing instances of payment by Medicare when another payer has primary responsibility. Further, CMS has an interest in obtaining reimbursements when appropriate. The reporting process mandated by Section 111 is being used by CMS to accomplish these goals.