7th Circ. Nixes Sanctions In Medicare Reimbursement Suit

Law360 (August 16, 2019, 7:06 PM EDT) -- The Seventh Circuit ruled Thursday that a lower court erred when it dismissed a lawsuit accusing State Farm of failing to reimburse Medicare Advantage organizations for medical expenses arising from car accidents and imposed sanctions on the groups’ attorneys for an “understandable” mix-up.

However, the judge was within his rights to deny three companies charged with recovering money owed to those Medicare organizations — MAO-MSO Recovery II LLC, MSP Recovery LLC and MSPA Claims 1 LLC — a third opportunity to amend their complaint, because they provided no link to a proper Medicare Advantage organization that made unreimbursed payments, the panel...

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