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MSP Recovery Law Firm Secures Major Legal Win for MSP Recovery as Maryland Supreme Court Upholds Validity of Medicare Recovery Assignments for MSP Recovery and Its Healthcare Clients, Paving the Way for Medicare Recovery Rights Being Pursued Against GEICO
GlobeNewswire News Roomยท 2025-07-12 21:16
Core Viewpoint - The Supreme Court of Maryland's ruling in favor of MSP Recovery Law Firm affirms the legality of recovery agreements under the Medicare Secondary Payer Act, allowing healthcare entities to recover over $1 billion in unpaid Medicare reimbursements from GEICO [4][5][6]. Group 1: Legal Context and Implications - The case involves class action lawsuits against GEICO for over $1 billion in unpaid Medicare reimbursements, with plaintiffs being healthcare entities that assigned their recovery rights to MSP Recovery [2]. - The court ordered data matching between MSP Recovery and GEICO, revealing significant unpaid Medicare secondary payments owed by GEICO, which is legally required to reimburse Medicare when it is the primary payer [3]. - The Supreme Court rejected GEICO's arguments that the recovery actions were void under Maryland law, affirming that the assignments are valid and do not violate public policy [4]. Group 2: Impact on Medicare and Healthcare Industry - The ruling reinforces the ability of Medicare Advantage Organizations to assign recovery rights, enabling MSP Recovery to pursue claims effectively through litigation [6]. - This decision is significant for Medicare enforcement efforts, highlighting that billions in unreimbursed Medicare Secondary Payer Claims exist, which the Centers for Medicare and Medicaid Services (CMS) must address [6]. - MSP Recovery Law Firm emphasizes its commitment to protecting public healthcare funds and holding primary payers accountable for their obligations under the Medicare Secondary Payer Act [5].