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Law Firm Reaches Agreement with the United States Department of Justice Regarding the Firm’s Failure

The U.S. Attorney’s Office for the Eastern District of Philadelphia issued a press release regarding a settlement agreement with a Philadelphia personal injury law firm. The agreement followed an investigation into allegations that the firm failed to reimburse the federal government for Medicare conditional payments issued on behalf of their clients’ medical care.

Under the agreement, the firm’s principal is required to make a $28,000 lump sum payment and to establish a compliance program within the firm to ensure that Medicare secondary payer debt is paid in a timely manner. The press release specifically warns that this agreement should remind personal injury lawyers and others of their obligation to reimburse Medicare for conditional payments. A U.S. Attorney states that “Congress enacted these rules to ensure timely repayment from responsible parties, and we intend to hold attorneys accountable for failing to make good on their obligations.”

Although the federal government sought recovery from the plaintiff’s counsel in this matter, it is important to note that their recovery right is broad. Given the U.S. Attorney’s Office’s actions, it is important to address and resolve conditional payment claims as a part of a settlement in a timely manner. Please let us know if we can assist with researching and resolving Medicare conditional payment claims to ensure that future liability is mitigated.

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