Theory of Continuing Accrual Not Recognized By Court in Conditional Payment Reimbursement Claims
Here is an update to the matter of United States v. Stricker which we first covered on the blawg ten months ago:
In this case, the Government alleged that 907 recipients of the Abernathy settlement (a “global settlement” of $300 million) received Medicare payments for medical expenses for injuries related to PCB contamination. $275 million was provided at the time of the settlement and the remaining $25 million in ten annual installments paid over a ten year period.
In its lawsuit filed on December 1, 2009, the Government sought to recover reimbursement for its Medicare payments from the corporate defendants, their insurance carriers, and certain attorneys who represented Abernathy plaintiffs and allegedly received settlement funds. The government argued that each $2.5 million annual disbursement constituted a primary payment under the Medicare Secondary Payer (MSP) statute and “re-set” the statute of limitations every time a payment was made.
The government’s case was dismissed on September 30th, 2010 due to the statute for limitations for the MSP reimbursement claim having expired.