The International Underwriting Association has welcomed news of streamlined Medicare reporting requirements for companies covering personal injury claims in the United States.
Insurers have a statutory obligation to report settlements made with claimants that benefit from the country’s public health programme. Previously, this would have to be done by all firms participating in a subscription market risk, even though it resulted in multiple reports about the same settlement. The IUA has long campaigned for a more efficient system that would allow the required information to be provided only by lead insurers. Such an arrangement already operates for Lloyd’s insurers.
Now, the Centers for Medicare & Medicaid Services, have confirmed in writing to the IUA that lead-only reporting is an acceptable provision to satisfy mandatory reporting requirements on all subscription policies.
Tom Hughes, IUA Senior Market Services Executive, said: “The introduction of lead-only reporting across the board is a very welcome development for IUA members. There have been many discussions on this issue with the authorities in the US and I am delighted that an agreement has finally been reached.
“The new arrangement will reduce compliance costs for insurers whilst still ensuring that Medicare receives all the information necessary to administer personal injury settlements.”
