LifeWallet Announces New Comprehensive Settlement With A Group of Affiliated Property & Casualty Insurers And Completion Of First Version Of Co's Clearinghouse System Through Its Exclusive Healthcare Partnership With Palantir Technologies; Includes A Cash Payment From The P&C Insurers To LifeWallet To Settle Existing Historical Claims, No Financial Terms Disclosed

Author: Benzinga Newsdesk | July 22, 2024 04:29pm

MSP Recovery, Inc. d/b/a LifeWallet (NASDAQ:LIFW) ("LifeWallet" or "the Company") announces a new comprehensive settlement with another group of affiliated P&C insurers doing business in multiple states. This most recent settlement is in addition to two previously announced settlements within the past five months with multiple property and casualty insurers ("P&C insurers") that have paved the way for the discovery and potential recovery of improperly paid claims on the part of Medicare Payers, that should have been paid by primary payers.1 These improper payments affect the Medicare Trust Fund. As described by a federal appellate judge, when Secondary Payers "recover efficiently from Primary Payers, the Medicare Trust Fund does achieve cost savings."2

This latest settlement offers a going-forward process to collaboratively and timely resolve future claims and share important historical data that is expected to enhance LifeWallet's claims reconciliation capabilities, identifying claims owned by LifeWallet that it may have a right to recover on, benefiting Medicare plans and downstream entities across the mainland U.S. and Puerto Rico.

Details of the settlement include:

• The P&C Insurers' agreement to provide ten years of historical data (identifying all claims processed from January 1, 2014, through the effective date) and data sharing of future claims, extending out for one year, assisting LifeWallet in reconciling its current and future assigned Medicare claims to be able to collect on owned claims that are owed as a result of failure to pay or reimburse;
• The P&C Insurers' Implementation of LifeWallet's coordination of benefits clearinghouse solution; 
• A 10-year agreement to resolve cooperatively, or through binding mediation, relevant Medicare claims (liens) that LifeWallet owns today and in the future; 
• The P&C Insurers' agreement that they are primary payers for any unreimbursed Medicare lien that LifeWallet identifies from data sharing, and the P&C Insurers' agreement to assign all rights to collect against other third parties that either failed to pay liens or collected twice from Medicare funds and the P&C Insurers; and
• A cash payment from the P&C Insurers to LifeWallet to settle existing historical claims (amount subject to confidentiality).

Posted In: LIFW PLTR