Maryland Court Victory Boosts MSP Recovery's Legal Efforts

Maryland Court Victory Boosts MSP Recovery's Legal Efforts

MSP Recovery, Inc. (NASDAQ: MSPR), a prominent player in the Medicare, Medicaid, and secondary payer reimbursement recovery sector, recently celebrated a significant legal triumph before the Maryland Supreme Court. The court's ruling upheld MSP Recovery's assignments from Medicare Advantage Organizations (MAOs), thereby enabling the company to push forward with its federal class action lawsuit against Government Employees Insurance Company (GEICO), one of the country's leading auto liability insurers.

The lawsuit arises from consolidated federal class actions filed in the District Court for the District of Maryland. MSP Recovery, working through its affiliates, is seeking to recover numerous conditional payments made by MAOs for medical expenses that should have been reimbursed by GEICO as the primary payer under the Medicare Secondary Payer (MSP) Act. After addressing GEICO's challenge to its standing and handling a motion for summary judgment, the federal court referred a critical question to the Maryland Supreme Court regarding the validity of MSP's assignments under state public policy.

In this landmark decision, the Maryland Supreme Court determined that the assignments were not only valid but enforceable. The court rejected GEICO's arguments based on outdated legal doctrines such as champerty, maintenance, and barratry, affirming that these concepts have no relevance in today's Maryland legal landscape. This ruling bolsters the rights of MAOs to assign reimbursement claims to entities like MSP Recovery, empowering them to pursue enforcement and recovery vigorously.

John H. Ruiz, the Founder and CEO of MSP Recovery, expressed the importance of this ruling, stating, "This landmark affirmation of our model and mission reinforces our commitment to hold insurers accountable. For years, companies like GEICO have sidestepped federal laws, leaving taxpayers and Medicare to bear the financial burden. This decision is a critical step towards full class action certification and ultimately going to trial."

The pending class action aims to hold GEICO accountable for its consistent failure to reimburse Medicare Advantage Organizations for medical claims related to injuries, despite a legal obligation to do so. MSP Recovery's legal filings underscore this failure, including the court's order directing a court-supervised data-matching process to pinpoint instances of non-reimbursement. In response, MSP undertook an extensive data analysis of GEICO’s claims from March 2011 to July 2019, utilizing unique identifiers to align MAO-paid medical claims with GEICO's bodily injury settlements. This meticulous process unveiled a considerable number of matches indicating that GEICO had resolved claims without reimbursing the corresponding payments made by MAOs. MSP contends that these findings are not merely isolated incidents; they reveal a widespread, systemic failure to adhere to the Medicare Secondary Payer Act.

Despite GEICO's attempts to challenge the legitimacy of MSP Recovery's assignments—a move rejected by the Maryland Supreme Court—the ruling reinforces MSP Recovery's right to seek recovery in Maryland and underscores the legality of its national assignment-based recovery strategy.

“The Medicare Secondary Payer Act ensures that primary insurers cover healthcare costs for injuries. Today’s ruling sends a clear message: tactics that aim to evade reimbursement obligations will not prevail,” Ruiz added.

MSP Recovery’s Chief Legal Officer, Frank C. Quesada, highlighted the company’s unwavering commitment to safeguarding public healthcare funds and ensuring primary payers fulfill their responsibilities in reimbursing Medicare Advantage Organizations for the payments they should not have made.

About MSP Recovery

Established in 2014, MSP Recovery has emerged as a leader in the field of Medicare, Medicaid, and secondary payer reimbursement recovery. The company is redefining the outdated healthcare reimbursement system through innovative, data-driven solutions aimed at recovering funds from responsible parties. MSP Recovery develops cutting-edge technologies and offers comprehensive solutions across various sectors, including healthcare and legal services. To explore more about their mission and services, you can visit their website at msprecovery.com.

Frequently Asked Questions

1. What legal victory did MSP Recovery achieve recently?

MSP Recovery secured a ruling from the Maryland Supreme Court that upheld the validity of its assignments from Medicare Advantage Organizations, allowing it to proceed with a class action lawsuit against GEICO.

2. Why is this ruling significant for MSP Recovery?

This ruling enables MSP Recovery to hold GEICO accountable for allegedly failing to reimburse Medicare Advantage Organizations for medical claims they are legally required to cover, marking an important step in their ongoing legal battle.

3. What is the Medicare Secondary Payer Act?

The Medicare Secondary Payer Act is a federal law that requires primary insurers, like GEICO, to pay for healthcare costs related to injuries before Medicare does, preventing taxpayers from covering these expenses.

4. How does MSP Recovery aim to support healthcare organizations?

MSP Recovery focuses on recovering funds for healthcare organizations by challenging non-compliance with federal laws regarding reimbursement, thereby protecting public healthcare resources.

5. What kind of solutions does MSP Recovery provide?

MSP Recovery offers data-driven solutions and innovative technologies aimed at enhancing the process of recovering healthcare reimbursements from responsible parties, disrupting traditional systems in the healthcare industry.

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