Humana Medicare Advantage Plan Sues Farmers Insurance Over Medicare Secondary Payer Rules

On July 22, 2013, Humana Inc. filed four federal lawsuits against Farmers Insurance Group of Companies seeking repayment under the Medicare Secondary Payer (MSP) system for care provided to Medicare Advantage enrollees. The MSP system is intended to prevent cost shifting when another primary payer exists for a beneficiary’s care. Other primary payers can include a group health plan, workers’ compensation plans, an auto insurance plan, or a homeowners insurance plan. If medical care is provided to a fee-for-service Medicare beneficiary who has a claim for coverage by another payer, the Medicare Coordination of Benefits Contractor, MSP . . .