The Centers for Medicare & Medicaid Services (CMS) recently issued documentation signaling that Liability Medicare Set-Asides (LMSAs) and No-Fault Medicare Set-Asides (NFMSAs) will be notated fields in CMS’ Common Working File. Effective October 1, 2017, Medicare Administrative Contractors will begin denying payment for services associated with an open LMSA or NFMSA record. The CMS Manual Update can be found here.

This update follows closely to other recent indications in the past year from CMS that it was working toward creating a voluntary LMSA/NFMSA review process. On June 9, 2016, CMS issued an Alert that it was considering expanding its voluntary MSA review process to include the review of LMSAs and NFMSAs.

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