Treasury Offset Program

Issue:

Companies settling claims and insurers often receive notices from the Treasury Department years after a settlement or payment that the government is deducting MSP payments from tax refunds otherwise payable by the government.  These notices, issued under the Treasury Offset Program (TOP), are often going to CFOs or tax departments unfamiliar with MSP issues.  More importantly, neither the company nor Treasury can identify the MSP claims for which the deduction is made.  In cases where the MSP claims can be identified, usually the company has had no notice of the claims at issue, either because demands for repayment were never received, or they were sent to branch offices or closed facilities.

MARC is engaging with both CMS and Treasury to remedy the current flaws in the TOP program.  At a minimum, both CMS (or its contractors) and Treasury should be required to provide sufficient notice to MARC members and others to contest or otherwise address MSP claims before the TOP program is applied.

Issue Brief:

Treasury Offset Program Issue Brief