Beginning on January 1, 2010, extensive new Medicare reporting obligations
will apply to insurance companies and other businesses that make payments
to Medicare beneficiaries as a result of litigation claims. The
obligations extend to businesses that cover private health insurance,
workers’ compensation claims programs, no-fault insurance, liability
insurance and self-insured businesses. These organizations—known as
Responsible Reporting Entities ("RREs")—will be required
to report virtually all payments to Medicare beneficiaries, including
settlements and payments made as a result of litigation, so that Medicare
may determine whether it has a stake in any part of the payment. Failure
to report may result in significant financial penalties.
