Primary Payer Is Bankrupt or Insolvent

40.5 - Primary Payer Is Bankrupt or Insolvent (Rev. 11550; Issued: 08-12-22; Effective: 10-13-22; Implementation:10-13-22) When a GHP or NGHP primary payer fails to pay primary benefits in accordance with CMS' policy because it is bankrupt or insolvent, CMS does not make a conditional primary payment and does not make a Medicare secondary payment until after the conclusion of the bankruptcy or insolvency proceedings. After the conclusion of the bankruptcy or insolvency proceedings, providers, physicians, or other suppliers may file Medicare secondary claims. CMS determines the amount of Medicare secondary payments, if any, after the conclusion of the bankruptcy or insolvency proceedings.