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CMS to enforce MMSEA 111 reporting compliance beginning October 2025

Starting October 11, 2025, organizations that fail to meet reporting obligations under Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA 111) may face civil monetary penalties (CMPs). While this change does not alter the long-standing reporting requirements or the existing risk of liability under the federal False Claims Act for causing Medicare overpayments due to MMSEA 111 reporting errors, the introduction of CMPs significantly increases the compliance risk for insurers, self-insured entities, and third-party administrators subject to MMSEA 111.

Here is what stakeholders in the liability, no-fault, workers’ compensation, and group health plan spaces need to know.




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An Update on NAIC’s Consideration of AI Model Law for Insurers

The National Association of Insurance Commissioners’ (NAIC) Big Data and Artificial Intelligence (H) Working Group released a request for information (RFI) to explore the potential drafting of a model law to regulate insurers’ use of artificial intelligence (AI) systems. The RFI asks stakeholders to provide comments on whether uniform statutory requirements for AI are needed in the insurance industry.

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New York State Budget Institutes Revenue-Neutral Health Plan Tax

The New York State fiscal year 2024 – 2025 budget institutes a new tax on health plans, including insurers and managed care organizations. This tax has been garnering attention for its promise to yield $4 billion for New York State. The expected revenue from the tax, however, is set to come not from the health plans operating within the state but from the federal government. California implemented a similar scheme last year.

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Leniency on Implementation Timetables for Surprise Billing and Insurer Price Transparency

The Biden administration is giving insurers more time to follow the insurer price transparency rule and the ban on surprise billing. Federal regulators will delay enforcement of machine-readable file provider rates until July 1, rather than the start of 2022. In this article published in Modern Healthcare, McDermott Partner Kate McDonald noted that the initial timeline was “very aggressive.”

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