U.S. District Courts Dismiss Claims Brought by MAO-MSO Recovery II

MAO-MSO Recovery II, LLC (“MAO-MSO”) has filed putative class action suits against multiple insurance carriers claiming to be assignees of recovery rights originally held by numerous Medicare Advantage Organizations. Pursuant to the Medicare Secondary Payer’s Act’s private cause of action, MAO-MSO is seeking recovery from insurers for failing to reimburse Medicare Advantage Organizations for payments made on behalf of beneficiaries for injury related treatment. In a string of similar suits filed by MAO-MSO in District Courts throughout the country, the courts have dismissed their claims. For example, recently, in MAO-MSO Recovery II, LLC v. USAA Cas. Ins. Co., a U.S. District Court in Florida dismissed MAO-MSO’s complaint for failing to establish standing to bring their suit, because they did not allege any facts in their complaint regarding the existence of the assignment agreement. Similarly, in MAO-MSO Recovery II, LLC v. Allstate Ins. Co., a U.S. District Court in Florida dismissed MAO-MSO’s complaint for failing to state a claim. In both cases, MAO-MSO has been permitted to refile their complaint. We will continue to monitor MAO-MSO’s suits and provide updates regarding developments in these cases. Given the aggressive nature of this company and others, it is crucial to ensure that such liens are handled properly to avoid the time and expense of litigation.

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