Chevron Deference Enables 'Settlement Tax' of Over $1 Billion

The Medicare Secondary Payer Act (MSP Act) has been in place since December 6, 1980, when President Jimmy Carter signed it into law. This change made Medicare a 'secondary payer,' meaning it covers only costs not paid by the primary insurer.

However, over the years, the Centers for Medicare and Medicaid Services (CMS) has taken its role far beyond what the MSP Act permits, using Chevron deference to create legal fictions that industry experts closely follow.

This has led to a 'settlement tax' totaling over $1 billion in the last four years combined, with insurance carriers being unwittingly compelled to pay it.