The Real Truth Behind the MRR Medicare Settlement with the U.S. Attorney

The MRR Medicare Settlement Was Based on a Post-Settlement Revision of the Previously Advised Lien Amount

This week, the U.S. Attorney’s office issued a press release detailing a settlement with Meyers, Rodbell and Rosenbaum (MRR) involving a claim arising out of the conclusion of a medical malpractice case that was settled in late 2015. While MRR did reach a settlement with the U.S. Attorney’s office, the full facts of the case and the subsequent settlement were not made clear in the press release and we want to set the record straight.

Multiple Pieces of Evidence Clearly Showed the Amount Claimed to be Owed Prior to the MRR Settlement of Malpractice Case

In 2015, MRR represented the family of a deceased relative, and litigated a medical malpractice claim on behalf of the family. MRR was successful on behalf of the family in reaching a settlement with the health care providers, and using documents provided by Medicare substantiated that $14,990 was the correct amount owed to Medicare. In fact, MRR solicited and received several notices – via mail and phone - from Medicare indicating that $14,990 was the amount owed. Then, again, immediately prior to mediation and several weeks after mediation, and the successful conclusion of the case in 2015, MRR again confirmed the $14,990 owed and promptly paid that amount to Medicare, relying on their multiple written confirmations of the amount owed.

Two months after what was believed to have been the successful conclusion of the case, MRR was contacted by Medicare alerting the firm that it had revised the lien amount from $14,990 to $330,000, a vast difference from what was previously represented by Medicare.

MRR Settled with the U.S. Attorney to Prevent Lengthy and Costly Litigation

After many attempts to reason with Medicare – citing all of the documentation received from the agency that clearly indicated that $14,990 was the amount owed -MRR did not feel that it was in anyone’s best interest to prolong this issue with what would have been lengthy and costly litigation and that the best option for the firm and our client was to reach a settlement with Medicare.

That being said, MRR believes that there needs to be significant reforms as to how Medicare determines and reports on liens in malpractice cases. After our experience and in conversations with the U.S. Attorney’s office, we are confident they will further investigate how and why Medicare failed to provide accurate lien information to MRR and that adequate mechanisms and safeguards will be implemented by Medicare in the future.