Liability Development

10.7.3 - Liability Development (Rev. 11550; Issued: 08-12-22; Effective: 10-13-22; Implementation:10-13-22) The MSP Contractor develops to determine if a liability (including automobile liability) insurance claim has been or will be filed. If, as a result of that development or receipt of self-reported information (for example, letter from beneficiary or attorney or other beneficiary representative, notification from provider), the beneficiary/representative indicates the intent to file a liability insurance claim, the beneficiary/representative is notified by the MSP Contractor of Medicare's potential recovery claim. If there is a settlement, judgment, or award, the MSP Contractor shall, where appropriate, send the attorney or other beneficiary representative a release agreement to be completed. If the MSP Contractor's development indicates there is a possible payment under liability insurance, the A/B MAC or DME MAC shall make conditional payment.