NCCI released a new study yesterday on MSAs, specifically, NCCI focused on the timeline for CMS approvals of MSAs in workers’ comp settlements. The study authors note that in 2013, CMS approved $1.8 billion in MSAs. Using a sample of proposed set-asides submitted to CMS, (not just approvals) NCCI assessed two main categories of data: demographics and aspects of the CMS review process. Demographics issues included “the distributions of amounts of MSAs and total settlements that include MSAs” while aspects of the review process included, “the length of time from submission to approval” and “the relation between submitted and CMS-approved MSA amounts.”
Key findings included:
- After a period of dramatic lengthening, CMS’s processing time for MSAs has recently declined
- The ratio of CMS-approved MSA amounts to submitted MSA amounts has declined over time
- The differences between proposed and approved MSA settlements have been largely due to prescription drug costs
- Most MSAs are for claimants who are Medicare-eligible at the time of settlement
- MSAs make up about 40% of total proposed settlements (and of that 40% prescription costs are half)
Read and download the study from NCCI here.