Federal Government’s Right to Sue and Collect Double Damages

10.12.1– Federal Government’s Right to Sue and Collect Double Damages (Rev. 12438; Issued: 01-04-24; Effective: 02-06-24; Implementation: 02-06-24) Separate from its subrogation rights, the Federal Government has an independent right to take legal action to recover Medicare primary payments from primary payers that fail to meet the requirement or the responsibility. The Federal Government may recover double damages in this type of lawsuit pursuant to §1862(b)(2)(B)(ii) of the Act. Primary payers include: • Insurers and third party administrators of group health plans and large group health plans and employers/employee organizations that sponsor or contribute to such plans; • No-fault insurers; • Any liability insurers or entities having plans of self-insurance; and • WC insurers or plans. The Government's right to collect double damages is effective for items and services furnished on or after December 20, 1989, under all MSP provisions except the MSP for the disabled provision. The Government's right to sue and collect double damages in a lawsuit under the MSP for the disabled provision is effective for items and services furnished on or after January 1, 1987.