PERMITTING RECOVERY AGAINST THIRD PARTY ADMINISTRATORS.

SEC. 4633. PERMITTING RECOVERY AGAINST THIRD PARTY ADMINISTRATORS. (a) Permitting Recovery Against Third Party Administrators of Primary Plans.—Section 1862(b)(2)(B)(ii) (42 U.S.C. 1395y(b)(2)(B)(ii)) is amended— (1) by striking “under this subsection to pay” and inserting “(directly, as a third-party administrator, or otherwise) to make payment”; and (2) by adding at the end the following: “The United States may not recover from a third-party administrator under this clause in cases where the third-party administrator would not be able to recover the amount at issue from the employer or group health plan and is not employed by or under contract with the employer or group health plan at the time the action for recovery is initiated by the United States or for whom it provides administrative services due to the insolvency or bankruptcy of the employer or plan.”. (b) Clarification of Beneficiary Liability.—Section 1862(b)(1) (42 U.S.C. 1395y(b)(1)) is amended by adding at the end the following new subparagraph: “(F) Limitation on beneficiary liability.—An individual who is entitled to benefits under this title and is furnished an item or service for which such benefits are incorrectly paid is not liable for repayment of such benefits under this paragraph unless payment of such benefits was made to the individual.”. (c) Effective Date.—The amendments made by this section apply to items and services furnished on or after the date of the enactment of this Act.