I’m gingerly stepping into a topic I’ve mostly avoided to date – MSAs. I avoid it because it is mind-numbingly complex, seemingly illogical in application, and served by often-contentious vendors.
NCCI’s Barry Lipton et al just released an excellent synopsis of the MSA situation (opens .pdf) and summary of where things are today. The report focuses on the feds’ review process, wherein they examine payers’ proposed MSAs. Based on an analysis of data submitted by Gould and Lamb and NCCI’s Medical Call database, a few of the Research Brief’s highlights include:
- most MSAs are for Medicare-eligible claimants, with 45% over 60
- MSAs make up 40% of the average total proposed settlement
- Drugs make up fully half of the MSA amount
- CMS’ processing time for MSAs has declined of late to a median of 41 days
- The gap between submitted and approved MSAs has shruck dramatically.
- 29% of settlements are for amounts over $200,000, while 45% of the MSA amounts are less than $25,000.
- Most MSA settlements are paid as a lump sum.
- More than 90% of MSAs completed in December 2012 were approved as submitted. That came after CMS changed approval vendors in July 2012.
The report is stuffed full of great information and, for those of us who are relatively ignorant of MSAs yet encounter them on occasion, well worth a read.
What does this mean for you?
If you don’t have the time right now, put it in your research file so you’ll have it when you need it. And you will need it.