MSP Recovery Law Firm Secures Major Legal Win for MSP Recovery as Maryland Supreme Court Upholds Validity of Medicare Recovery Assignments for MSP Recovery and Its Healthcare Clients, Paving the Way for Medicare Recovery Rights Being Pursued Against GEICO

MIAMI, July 12, 2025 (GLOBE NEWSWIRE) -- MSP Recovery Law Firm, counsel to MSP Recovery and its affiliated healthcare clients, announces a major legal victory following a decision by the Supreme Court of Maryland in the matter of Government Employees Insurance Company, et al. v. MAO-MSO Recovery II, LLC, Series PMPI, et al. At issue in the case were putative class action lawsuits brought against GEICO in the U.S. District Court for the District of Maryland, in which the plaintiffs—healthcare entities who assigned their recovery rights to MSP Recovery—sought to recover in excess of $1 billion in unpaid Medicare reimbursements under the Medicare Secondary Payer (MSP) Act. The ongoing Maryland lawsuit against GEICO is significantly advanced, with the court ordering data matching between MSP Recovery and GEICO, revealing substantial unpaid Medicare secondary payments owed by GEICO. Under federal law, when a Medicare beneficiary also has coverage through a private insurer (such as GEICO), that insurer is considered the primary payer and is legally required to pay first. If Medicare—or a Medicare Advantage Organization (MAO)—makes a conditional payment in the meantime, the primary payer is obligated to reimburse those costs. The plaintiffs, acting under assignment agreements with MAOs and other secondary payers, alleged that GEICO failed to meet its reimbursement obligations, leaving Medicare or MAO plans to bear costs that GEICO was legally responsible for. GEICO challenged the validity of the recovery actions, arguing that the assignments MSP Recovery relies on were void under Maryland law because they constituted unlawful promotion of litigation—an argument rooted in the antiquated doctrines of champerty, maintenance, and barratry. The Supreme Court of Maryland, however, rejected those arguments, holding that: “The assignments at issue in this case are not void as against public policy.” The Court emphasized that: The recovery agreements do not violate Maryland’s barratry statute (Md. Code Ann., Bus. Occ. & Prof. § 10-604(b)(1)); Maryland does not recognize a public policy strong enough to invalidate the type of recovery arrangement used by MSP Recovery; The doctrine of barratry does not apply to MSP Recovery’s legal activities on behalf of MAOs and other healthcare entities. “This ruling affirms the legal structure that allows Medicare Advantage Organizations to assign recovery rights to MSP Recovery, ensuring that property and casualty insurers like GEICO, fulfill their obligations under the Medicare Secondary Payer Act,” said MSP Recovery Law Firm Founder, John H. Ruiz. He continued, “For the last eleven years we have fought the property and casualty insurance industry while they attempted to dodge their payment obligations, ultimately leaving taxpayers to foot the bill.” MSP Recovery Law Firm’s Frank C. Quesada added, “This underscores MSP Recovery’s commitment to protecting public healthcare funds and holding primary payers accountable, reimbursing Medicare Advantage Organizations for conditional payments they never should have had to make.” The Court’s ruling provides essential legal clarity for ongoing and future MSP recovery efforts nationwide and confirms that Maryland law does not prohibit the litigation-based recovery of funds under the MSP framework. The decision marks a major win for Medicare enforcement efforts, reinforcing that Medicare Advantage plans can assign their recovery rights and that entities like MSP Recovery can legally and effectively pursue those claims through litigation. While the Maryland decision focused on Medicare Part C plans, this victory underscores how the Centers for Medicare and Medicaid Services (CMS) itself has billions in unreimbursed Medicare Secondary Payer Claims. About MSP Recovery Law Firm MSP Recovery Law Firm represents healthcare providers, Medicare Advantage Organizations, and their affiliates in complex litigation aimed at recovering improperly denied or unpaid Medicare reimbursements under federal law. The firm is nationally recognized for its work in Medicare Secondary Payer compliance and enforcement, helping recover funds rightfully owed to the healthcare system and taxpayers. For more information or interview requests, contact:Info@msprecoverylawfirm.com

MSP Recovery Law Firm Secures Major Legal Win for MSP Recovery as Maryland Supreme Court Upholds Validity of Medicare Recovery Assignments for MSP Recovery and Its Healthcare Clients, Paving the Way for Medicare Recovery Rights Being Pursued Against GEICO

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