Class Action Lawsuits for inappropriate billing of Liability Insurance represent a growing threat to hospitals across the nation. For nearly 15 years, Medical Reimbursements of America (MRA) has helped hospitals avoid the hidden dangers of incorrectly billing Liability insurance for accident claims. MRA’s legal team has tracked several suits that have arisen due to incorrect interpretations of contracts related to Liability insurance billing for accident claims. In each of these lawsuits, the provider has incorrectly pursued Liability insurance primary to the patient’s Commercial Health insurance. A summary of these lawsuits is presented below in order to help hospital billing offices avoid compliance-related Class Action Lawsuits in the future.
Minimize your Hospital’s Exposure to Financial Clawback
Recently the IRS released final regulations for 501(r) that have led to a number of questions around financial assistance and collections policies for 501(c)(3) providers. The impact of 501(r) on accident claims tends to be overlooked because accident claims typically account for less than 3% of outstanding accounts receivables. However, when managed properly, accident claim reimbursements can significantly improve financial performance. It is imperative that providers properly adhere to the new requirements defined in Section 501(r) in order to compliantly maximize revenues on accident claims and prevent potential clawbacks from FAP-eligible patients.