| Apparently the term "Medicare Super Lien" is a title that has been adopted by legal experts to identify Medicare's right to reimbursement. Medicare's right to reimbursement is not technically a lien, but the statutory language providing for reimbursement gives Medicare great power in seeking their reimbursement. In particular, their strongest right of recovery is directed towards liability insurance companies. Under the statute, if Medicare is not reimbursed, then the third-party payer, in particular the liability insurance carrier, must reimburse Medicare even though it may have already reimbursed the other party. This essentially would create a double payout for the insurance company if they ignore Medicare's lien. The statute doesn't appear to put any obligation upon the attorney for the claimant or require that he pay out of the settlement proceeds to satisfy Medicare. Therefore, it is imperative that the insurance company recognize the lien if such right of reimbursement exists and insure its payment before settlement proceeds are disbursed. The reason the term Medicare Super Lien has been used is because Medicare is essentially given the right to reimbursement from anyone that "knew or should have known about Medicare's payments but failed to protect their recovery rights". This language is from the Health Care & Finance Administration in conjunction with the Medicare secondary payer program. In conclusion, while the Medicare Super Lien is not actually a lien it is a recognized right to reimbursement that imposes a super responsibility upon the insurance carrier and the defense attorneys to recognize Medicare's right of reimbursement and essentially places an overwhelming burden on the insurance company to pay Medicare back when it settles with a claimant due to the potential double payout result. |
