CMS issues state guidance on 3rd party liability in Medicaid

The Centers for Medicare & Medicaid Services yesterday released guidance for states on new Medicaid Third-Party Liability requirements resulting from recent legislative and court actions. Specifically, states are required to legally bar liable third-party payers from refusing payment solely on the basis that an item or service did not receive prior authorization under the third-party payer’s rules. They also can create a lien over injury settlement proceeds attributable to future medical expenses.