Chaos for Workers' Compensation Programs--The Elimination of Social Security Numbers?

The Centers for Medicare & Medicaid Services (CMS) is readying a fraud prevention initiative that removes Social Security Numbers (SSN) from Medicare cards to help combat identity theft and safeguard taxpayer dollars. The question remains whether the elimination will cause chaos in state workers' compensation programs since the SSNs have historically been utilized as personal identifiers.


For decades private and public insurance systems have relied upon SSN as a major identifier for benefits delivery and record keeping programs. The change surely is going to increase industry costs for the actual conversion process and create some bumps in the road going forward. Workers and their attorneys may also experience inconvenience in initially obtaining benefits and researching prior records. Furthermore, investigatory resources will suffer the burden additional costs in an attempt to convert information and have it readily available on demand. A critical issue remains for lawyers who handle this data and their ethical responsibility to maintain confidentiality.

CMS has rationalized that the new cards will use a unique, randomly-assigned number called a Medicare Beneficiary Identifier (MBI), to replace the Social Security-based Health Insurance Claim Number (HICN) currently used on the Medicare card. CMS will begin mailing new cards in April 2018 and will meet the congressional deadline for replacing all Medicare cards by April 2019. Today, CMS kicks-off a multi-faceted outreach campaign to help providers get ready for the new MBI.

“We’re taking this step to protect our seniors from fraudulent use of Social Security numbers which can lead to identity theft and illegal use of Medicare benefits,” said CMS Administrator Seema Verma. “We want to be sure that Medicare beneficiaries and healthcare providers know about these changes well in advance and have the information they need to make a seamless transition.”

Providers and beneficiaries will both be able to use secure look up tools that will support quick access to MBIs when they need them. There will also be a 21-month transition period where providers will be able to use either the MBI or the HICN further easing the transition

CMS testified on Tuesday, May 23rd before the U.S. House Committee on Ways & Means Subcommittee on Social Security and U.S. House Committee on Oversight & Government Reform Subcommittee on Information Technology, addressing CMS’s comprehensive plan for the removal of Social Security numbers and transition to MBIs.

Personal identity theft affects a large and growing number of seniors. People age 65 or older are increasingly the victims of this type of crime. Incidents among seniors increased to 2.6 million from 2.1 million between 2012 and 2014, according to the most current statistics from the Department of Justice. Identity theft can take not only an emotional toll on those who experience it, but also a financial one: two-thirds of all identity theft victims reported a direct financial loss. It can also disrupt lives, damage credit ratings and result in inaccuracies in medical records and costly false claims.

Work on this important initiative began many years ago, and was accelerated following passage of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). CMS will assign all Medicare beneficiaries a new, unique MBI number which will contain a combination of numbers and uppercase letters. Beneficiaries will be instructed to safely and securely destroy their current Medicare cards and keep the new MBI confidential. Issuance of the new MBI will not change the benefits a Medicare beneficiary receives.

CMS is committed to a successful transition to the MBI for people with Medicare and for the health care provider community. CMS has a website dedicated to the Social Security Removal Initiative (SSNRI) where providers can find the latest information and sign-up for newsletters. CMS is also planning regular calls as a way to share updates and answer provider questions before and after new cards are mailed beginning in April 2018.

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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). 

For over 4 decades theLaw Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  has been representing injured workers and their families who have suffered occupational accidents and illnesses.

Follow us on twitter: https://twitter.com/jongelman 

Related Articles of Interest:

Social Security Numbers and Workers' Comp Forms - The Ugly

Cybersecurity is an imminent and costly threat to lawyers and their clients

Updated: 6-5-17 10:53am

Chaos in Workers' Compensation - Raising Medicare's Eligibility Age to 67

A new issue for workers' compensation programs is  emerging as  the Republicans push forward on their legislative agenda to reform Medicare. Uncertainty over the impact of raising the eligibility age for Medicare from 65 to 67 may seriously and adversely impact the nation's network of fragile workers' compensation schemes. Furthermore, looming in the background is also the elimination of The Affordable Care Act and the consequence of a large pool of uninsured again seniors.

The workers' compensation system has been challenged by an aging universe of working seniors who bring to the table pre-existing and co-existing medical conditions that impact theories of occupational causal relationships and state workers' compensation law reforms involving prior functional loss. 

The Medicare Secondary Payer (MSP) Act may have a lightened load to one side of the scale. On the other side will be the elimination of a strong safety-net resulting in a major increase in the litigation of medical benefits and the end of cost-shifting by employers and their insurance companies onto the nations taxpayers.

A recently published study brings the issue out into the open and discuss the adverse consequences of raising the Medicare eligibility age from 65 to 67.

"Raising Medicare’s eligibility age to 67—featured in Speaker of the House Paul Ryan’s plan, “A Better Way: Health Care”—has gained renewed support in the current political environment.[ Research conducted by the Actuarial Research Corporation (ARC) for the National Committee to Preserve Social Security and Medicare Foundation provides compelling evidence that suggests this would not be a “better way,” either for the health of Americans aged 65 and 66 or for the financial health of the institutions that provide care for them."

Click here to read the entire article.

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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). 

For over 4 decades the Law Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  has been representing injured workers and their families who have suffered occupational accidents and illnesses.

CMS Town Hall Conference - Coordination of Benefits & Recovery for Liability Insurance (including Self-Insurance), NoFault Insurance and Workers’ Compensation

Town Hall Teleconference– November 17, 2016 
Coordination of Benefits & Recovery for Liability Insurance (including Self-Insurance), NoFault Insurance and Workers’ Compensation

On November 17, 2016, CMS will host a teleconference to connect with stakeholders and provide status updates. CMS expects to discuss the following topics:

• Ongoing Responsibility for Medicals (ORM) recovery, 
• Final Conditional Payment (CP) process reminders, 
• Medicare Secondary Payer Recovery Portal (MSPRP) improvements.

CMS staff and representatives from the Commercial Repayment Center (CRC) will participate. If time permits, CMS will respond to questions submitted to the email address listed below.

Date: November 17, 2016
Call-in time: 1:00pm-2:30pm EST Participation is by telephone only.
Call-in line: (800) 603-1774 Pass Code: 987659

Please begin dialing in approximately 5-10 minutes before the call start time.

Questions for the call: Please submit questions or comments to: COBR-NGHP-Comments@cms.hhs.gov