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HOW THE INFLATION REDUCTION ACT
DOES OR DOESN’T
AFFECT YOUR INJURY SETTLEMENT
NSSTA FALL EDUCATION MEETING
November 3, 2022
©SnyderMediations.com
Theda (Teddy) Snyder, Esq., CSSC, mediates civil and
administrative cases throughout California. Rated
“preeminent” by Martindale Hubbell (highest rating),
she has been an attorney for more than 40 years and
has settled hundreds of cases and tried more than
100. An active author for the law practice
management industry, her most recent book is The
Lawyer’s Marketing Journal, published by
AttorneyAtWork.com. She can be reached at
TSnyder@SnyderMediations.com
© SnyderMediations.com
CASE EVALUATION AND SETTLEMENT OF INJURY CASES
REVIEW CLAIM-RELATED MEDICAL RECORDS
AND MEDICAL PAYMENT HISTORY
• DROP OUT UNIQUE PROCEDURES, e.g., SURGERIES
• PROJECT FUTURE ONGOING CARE AND MEDICATIONS INCLUDING
COLA IN ILLUSTRATION OF PRESENT VALUE
• ADD IN FUTURE UNIQUE PROCEDURES AS LUMP SUMS
©SnyderMediations.com
WHO PAID PAST EXPENSES?
WHO WILL PAY FUTURE EXPENSES?
CIVIL LITIGATION
PRIVATE INSURANCE
MEDICARE
MEDICAID
OUT-OF-POCKET
LIEN
WORKERS COMP
EMPLOYER
CARRIER
SELF-INSURED
UNAUTHORIZED
PRIVATE INSURANCE
MEDICARE
MEDICAID
LIEN
©SnyderMediations.com
CIVIL LITIGATION
COLLATERAL SOURCE RULE
(most cases)
WORKERS COMP
PRIMARY PAYER RESPONSIBILITY
(Medicare)
©SnyderMediations.com
CASE EVALUATION AND SETTLEMENT OF INJURY CASES
INSURANCE PREMIUMS WHICH WOULD NOT BE NECESSARY
BUT FOR THIS INJURY
NON-MEDICARE ELIGIBLE EXPENSES
©SnyderMediations.com
INFLATION REDUCTION ACT OF 2022
H.R.5376 - Inflation Reduction Act of 2022
Public Law No: 117-169
Signed August 16, 2022
©SnyderMediations.com
MINIMUM CORPORATE TAX ON PROFIT– 15% sort of
STOCK BUYBACK TAX – 1% of fair market value
INCREASED FUNDING FOR INTERNAL REVENUE SERVICE
CLEAN ENERGY/ CARBON EMISSIONS REDUCTION
AGRICULTURE/ FORESTRY PROVISIONS
OTHER CLIMATE RESILIENCE PROVISIONS, INCUDING USE OF DEFENSE PRODUCTION ACT
©SnyderMediations.com
MEDICARE PRESCRIPTION DRUG FUNDING REFORM
PRICE NEGOTIATION
MAXIMUM OUT-OF-POCKET CAP
PART D PREMIUM INCREASE LIMIT
AFFORDABLE CARE ACT PREMIUM INCREASE LIMIT
©SnyderMediations.com
©SnyderMediations.com
PART D ENACTED 2003
42 U.S.C. 1395w-111 Prescription Drug Plans
(i) Noninterference.—In order to promote competition under this part and in carrying out this part, the
Secretary [of Health and Human Services]—
(1) may not interfere with the negotiations between drug manufacturers and pharmacies and PDP sponsors;
and
(2) may not require a particular formulary or institute a price structure for the reimbursement of covered
part D drugs.
©SnyderMediations.com
©SnyderMediations.com
NEGOTIATION IS COMING!!
WHEN?
2024
2024
2023
2023
2025
2025
2026
©SnyderMediations.com
THEN MEDICARE CAN NEGOTIATE
THE PRICE OF DRUGS– RIGHT?
NOT EXACTLY
©SnyderMediations.com
CHOOSE FROM THE 100 MOST EXPENSIVE DRUGS
50 FROM PART B/ 50 FROM PART D
10 in 2026
15 in 2027
30 in 2028
40 in 2029 and later years
©SnyderMediations.com
EXCEPTIONS
PHARMACEUTICALS THAT HAVE BEEN MARKETED FOR 9 YEARS
BIOTECH PHARMACEUTICALS (IN CONTRAST TO CHEMICAL COMPOUNDS)
MARKETED FOR 13 YEARS
“ORPHAN” DRUGS – EXCLUSIVE FDA APPROVAL TO TREAT CERTAIN RARE
CONDITIONS (7 YEARS)
©SnyderMediations.com
©SnyderMediations.com
$2,000 CAP ON OUT-OF-POCKET PRESCRIPTION EXPENSES
including Donut Hole
• Applies to drugs obtained through Plan D PDP or C
• Cap starts in 2025
• In 2024, no 5% co-pay in catastrophic tier
©SnyderMediations.com
CIVIL LITIGATION
COLLATERAL SOURCE RULE
EVALUATION SPECULATIVE
NEGOTIATION FLEXIBIITY
©SnyderMediations.com
SnyderMediations.com
WORKERS COMP
ONE POSSIBILITY:
MSA MONEY SLUSHES UP
NEGOTIATION FLEXIBILITY
PART D PREMIUMS
MAY BE PART OF EVALUATION –
PARTICULARLY FOR DISABLED RATHER THAN AGED
IRA LIMITS INCREASES TO 6%/YR 2023-2030
©SnyderMediations.com
©SnyderMediations.com
HEALTH INSURANCE INDUSTRY RESPONSE
AFFORDABLE CARE ACT PREMIUMS
SUBSIDIES RESTORED THROUGH 2025
THEN WHAT?
© SnyderMediations.com
SnyderMediations.com
SUBJECT FOR NEGOTIATION
REVERSIONARY TRUST?
©SnyderMediations.com
This Photo by Unknown Author is licensed under CC BY

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How the Inflation Reduction Act Does or Doesn't Affect Your Injury Settlement.pdf

  • 1. HOW THE INFLATION REDUCTION ACT DOES OR DOESN’T AFFECT YOUR INJURY SETTLEMENT NSSTA FALL EDUCATION MEETING November 3, 2022 ©SnyderMediations.com
  • 2. Theda (Teddy) Snyder, Esq., CSSC, mediates civil and administrative cases throughout California. Rated “preeminent” by Martindale Hubbell (highest rating), she has been an attorney for more than 40 years and has settled hundreds of cases and tried more than 100. An active author for the law practice management industry, her most recent book is The Lawyer’s Marketing Journal, published by AttorneyAtWork.com. She can be reached at TSnyder@SnyderMediations.com © SnyderMediations.com
  • 3. CASE EVALUATION AND SETTLEMENT OF INJURY CASES REVIEW CLAIM-RELATED MEDICAL RECORDS AND MEDICAL PAYMENT HISTORY • DROP OUT UNIQUE PROCEDURES, e.g., SURGERIES • PROJECT FUTURE ONGOING CARE AND MEDICATIONS INCLUDING COLA IN ILLUSTRATION OF PRESENT VALUE • ADD IN FUTURE UNIQUE PROCEDURES AS LUMP SUMS ©SnyderMediations.com
  • 4. WHO PAID PAST EXPENSES? WHO WILL PAY FUTURE EXPENSES? CIVIL LITIGATION PRIVATE INSURANCE MEDICARE MEDICAID OUT-OF-POCKET LIEN WORKERS COMP EMPLOYER CARRIER SELF-INSURED UNAUTHORIZED PRIVATE INSURANCE MEDICARE MEDICAID LIEN ©SnyderMediations.com
  • 5. CIVIL LITIGATION COLLATERAL SOURCE RULE (most cases) WORKERS COMP PRIMARY PAYER RESPONSIBILITY (Medicare) ©SnyderMediations.com
  • 6. CASE EVALUATION AND SETTLEMENT OF INJURY CASES INSURANCE PREMIUMS WHICH WOULD NOT BE NECESSARY BUT FOR THIS INJURY NON-MEDICARE ELIGIBLE EXPENSES ©SnyderMediations.com
  • 7. INFLATION REDUCTION ACT OF 2022 H.R.5376 - Inflation Reduction Act of 2022 Public Law No: 117-169 Signed August 16, 2022 ©SnyderMediations.com
  • 8. MINIMUM CORPORATE TAX ON PROFIT– 15% sort of STOCK BUYBACK TAX – 1% of fair market value INCREASED FUNDING FOR INTERNAL REVENUE SERVICE CLEAN ENERGY/ CARBON EMISSIONS REDUCTION AGRICULTURE/ FORESTRY PROVISIONS OTHER CLIMATE RESILIENCE PROVISIONS, INCUDING USE OF DEFENSE PRODUCTION ACT ©SnyderMediations.com
  • 9. MEDICARE PRESCRIPTION DRUG FUNDING REFORM PRICE NEGOTIATION MAXIMUM OUT-OF-POCKET CAP PART D PREMIUM INCREASE LIMIT AFFORDABLE CARE ACT PREMIUM INCREASE LIMIT ©SnyderMediations.com
  • 11. PART D ENACTED 2003 42 U.S.C. 1395w-111 Prescription Drug Plans (i) Noninterference.—In order to promote competition under this part and in carrying out this part, the Secretary [of Health and Human Services]— (1) may not interfere with the negotiations between drug manufacturers and pharmacies and PDP sponsors; and (2) may not require a particular formulary or institute a price structure for the reimbursement of covered part D drugs. ©SnyderMediations.com
  • 14. THEN MEDICARE CAN NEGOTIATE THE PRICE OF DRUGS– RIGHT? NOT EXACTLY ©SnyderMediations.com
  • 15. CHOOSE FROM THE 100 MOST EXPENSIVE DRUGS 50 FROM PART B/ 50 FROM PART D 10 in 2026 15 in 2027 30 in 2028 40 in 2029 and later years ©SnyderMediations.com
  • 16. EXCEPTIONS PHARMACEUTICALS THAT HAVE BEEN MARKETED FOR 9 YEARS BIOTECH PHARMACEUTICALS (IN CONTRAST TO CHEMICAL COMPOUNDS) MARKETED FOR 13 YEARS “ORPHAN” DRUGS – EXCLUSIVE FDA APPROVAL TO TREAT CERTAIN RARE CONDITIONS (7 YEARS) ©SnyderMediations.com
  • 18. $2,000 CAP ON OUT-OF-POCKET PRESCRIPTION EXPENSES including Donut Hole • Applies to drugs obtained through Plan D PDP or C • Cap starts in 2025 • In 2024, no 5% co-pay in catastrophic tier ©SnyderMediations.com
  • 19. CIVIL LITIGATION COLLATERAL SOURCE RULE EVALUATION SPECULATIVE NEGOTIATION FLEXIBIITY ©SnyderMediations.com
  • 20. SnyderMediations.com WORKERS COMP ONE POSSIBILITY: MSA MONEY SLUSHES UP NEGOTIATION FLEXIBILITY
  • 21. PART D PREMIUMS MAY BE PART OF EVALUATION – PARTICULARLY FOR DISABLED RATHER THAN AGED IRA LIMITS INCREASES TO 6%/YR 2023-2030 ©SnyderMediations.com
  • 23. AFFORDABLE CARE ACT PREMIUMS SUBSIDIES RESTORED THROUGH 2025 THEN WHAT? © SnyderMediations.com
  • 25. ©SnyderMediations.com This Photo by Unknown Author is licensed under CC BY