Private Health Insurance Companies Can Seek Double Damages Remedy Under Medicare Secondary Payer Act

In In re Avandia Marketing, Sales Practices and Products Liability Litigation, the Third Circuit held that private insurers providing Medicare Part C coverage may seek double damages under the Medicare Secondary Payer Act. 685 F.3d 353 (3d Cir. 2012). This reasoning has been adopted by other circuits and significantly expands reimbursement exposure for defendants and their insurers. Accordingly, parties resolving claims involving Medicare beneficiaries must ensure that Medicare Part C insurers are fully reimbursed, just as Medicare Parts A and B are.