The purpose of the MSP reporting requirements is to ensure that Medicare remains the secondary payer when a Medicare beneficiary has medical expenses that fall under the primary responsibility of a liability (including self-insurance), no-fault or workers' compensation insurance plan. It also will allow Medicare to recover any conditional payments it has made that should have been paid by the primary insurance plan. The reporting requirement originated in the Medicare, Medicaid, and the SCHIP Extension Act of 2007.
The American Insurance Association (AIA) formed a MSP Task Force within weeks of the enactment of the reporting requirements to help the industry comply with the new standards and serve as a key liaison for the property-casualty industry with the Centers for Medicare and Medicaid Services (CMS). The AIA MSP Task Force is comprised of AIA member companies along with several non-affiliated property-casualty companies.