New Section 111 Workers' Compensation Related Guidance

Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Section 111) imposes reporting obligations under the Medicare Secondary Payer (MSP) laws on certain entities, including liability insurance (including self-insurance), no fault insurance, and workers' compensation plans (commonly referred to by the Centers for Medicare & Medicaid Services (CMS) collectively as Non-Group Health Plans or NGHPs).

The Secretary of the U.S. Department of Health and Human Services is authorized to implement the mandatory reporting requirements "by program instruction or otherwise." As a result, the Section 111 reporting requirements are being implemented through sub-regulatory guidance, including a User Guide and supplemental Alerts. Entities that fail to comply with the Section 111 requirements may be subject to civil monetary penalties of $1,000 a day for each instance of non-reporting.