Medicare Part B Secondary Payer Deductible Issues Resulting from Change Request 
#7026

Effective Friday, April 1, 2011, CMS implemented CR 7026 - Allowing the Common 
Working File (CWF) to accept both Medicare Secondary Payer (MSP) and Non-MSP 
Lines on MSP Claims and MSP Adjustment Claims.

Medicare Part B claims processed after Friday, April 1, 2011, for which the 
beneficiary has a Medicare deductible remaining and Medicare is the secondary 
payer, are erroneously issuing payment despite the beneficiary's deductible not 
being satisfied or despite the total Medicare Allowed Amount being applied 
towards the deductible.

The recovery of overpayments made during this time will be performed 
systematically.  The recovery process has not yet been scheduled for 
implementation.

In addition to these overpayments, Physical Therapy and Occupational Therapy 
claims processed after Friday, April 1, 2011 where Medicare is the secondary 
payer and a deductible is not met are being held up by the system and are not 
being paid.

CMS anticipates both of these issues to be resolved in November 2011.


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