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SMART Act Establishes Statute of Limitations on Conditional Payment Recovery

On July 10, 2013, the Strengthening Medicare and Repaying Taxpayers (“SMART”) Act went into effect.  A major component of the law establishes a statute of limitations for recovery of Medicare conditional payments by the Center for Medicare and Medicaid Services (“CMS”).  Because CMS is a secondary payer of medical benefits, “conditional payments” are medical payments made by CMS, which are the primary responsibility of another provider.   Under the law, CMS will have three years from the date of receipt of notice of settlement, judgment, award, or other payment in which to collect conditional payments.

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