The Office of Management and Budget (OMB) has withdrawn an Advanced Notice of Proposed Rulemaking (ANPRM) in which CMS planned to address how Medicare’s interest should be protected in situations where future medical costs are claimed or released as part of a settlement.

In June 2012, CMS issued an ANPRM soliciting comments on options CMS was proposing to protect Medicare’s interest with respect to Medicare Secondary Payer (MSP) claims involving automobile and liability insurance (including self-insurance), no-fault insurance, and workers’ compensation when future medical care is claimed or the settlement, judgment, award, or other payment releases (or has the effect of releasing) claims for future medical care, as detailed in the summary in the ANPRM.

Although the proposed rule has been withdrawn, many interested parties expect CMS to reissue a proposed rule with more clarity for all stakeholders in liability settlements and caution that the withdrawal of the proposed rule does not change how settlements should be reviewed for MSP issues related to future costs of care that might otherwise be covered by Medicare under current law.

Reporter, Christina A. Gonzalez, Houston, +1 713 276 7340, cagonzalez@kslaw.com.