Skip to main content

NERA Senior Vice President Dr. Denise Martin delivered a presentation entitled "The Economic Implications of Medicare Section 111 Reporting Requirements" at this asbestos litigation conference in Beverly Hills, California on 25 February 2010. Medicare Section 111 requires tort liability payors to report all settlements with Medicare-eligible claims to the Centers for Medicare and Medicaid Services (CMS), so that CMS can evaluate whether it should have been the secondary payor. If so, CMS is entitled to attempt to recover the medical costs from these parties. The Act raises many questions for parties involved in asbestos litigation about the amounts likely to be at issue and the impact on settlements. In her presentation, Dr. Martin presented statistics on the proportion of settlements likely to be compensation for past and expected future medical costs versus other factors (such as lost income and pain and suffering) that should not be part of a CMS recovery. She also applied economics and game theory to predict how settlements might be affected.