A lawsuit was filed on 2/23/18 in Houston County, Alabama against a plaintiff’s law firm and Carr Allison, a Medicare compliance vendor, for failure to resolve Medicare’s conditional payments. The plaintiff was injured in a motorcycle accident on 10/24/13. Medicare paid all of his medical bills due to his status as a beneficiary. The plaintiff’s firm, Jacoby & Meyers, retained Carr Allison to notify Medicare of a settlement, dispute unrelated charges, negotiate a final demand and prepare a MSA.
The case settled on 3/17/16 for a substantial sum. On 6/1/16 Medicare issued a final demand for $89,973.30 with a due date of 7/30/16. Medicare issued another demand letter on 9/5/16 for $92,2222.64. This amount was never paid and Medicare turned the matter over to the Department of Treasury which reduced the plaintiff’s Social Security Disability payments to resolve the debt, caused a forfeiture of any tax refund that year and placed a lien against any further income tax refunds.
This lawsuit alleges that Jacoby & Meyers as well as Carr Allison failed to notify Medicare of the settlement, to dispute unrelated charges and resolve conditional payments owed to Medicare. The allegations against these defendants include negligence and breach of a fiduciary duty and is a lesson for all Medicare Secondary Payer professionals as well as all parties to the claim, the importance of complete follow through to protect Medicare’s interests. The case remains pending and we will provide updates as it evolves.