What is the Fixed Percentage Option?

This option provides certain Medicare beneficiaries with an alternative to resolving Medicare's recovery claim by paying a flat 25% of his/her total liability insurance (including self-insurance) settlement instead of following the traditional recovery process. In order to qualify for the Fixed Percentage Option, all of the criteria below must be met:

1. The liability insurance settlement must be for a physical trauma based injury (i.e., it does not relate to ingestion, exposure, or medical implant).
2. The total liability settlement, judgment, award, or other payment is $10,000 or less.
3. The beneficiary elects the option within the required timeframe:
   • The request must be submitted before or at the time the settlement documentation is submitted.
   • If a Conditional Payment Notice (CPN) has been issued, the request must be on or before the CPN response is due (30 days from the date of the CPN).
4. Medicare has not issued a demand letter or other request for reimbursement related to the incident.
5. The beneficiary has not received and does not expect to receive any other settlements, judgments, awards, or other payments related to the incident.

How to elect this option

1. In order to elect this option, the following Medicare Secondary Payer Recovery Portal (MSPRP) field requirements must be met:

   Table 1: Case Information Page

   Field	Requirement
   Case Type	Must be Liability Insurance

   Table 2: Settlement Information Page

   Field	Requirement
   Injury Type	Must be Traumatic Injury
   Settlement Amount	Must be less than or equal to $10,000
   Settlement Date	Must be entered
   Fixed Percentage Option	Must be selected
   MED/PIP/Other Exclusions	Cannot be entered
   Attestation	Must be checked

2. Documentation must be completed by the beneficiary or the beneficiary's representative and uploaded to the case using the Upload Documentation link found on the Settlement Information page. The submitted documentation must include the required data outlined in the document found at the following link.
    

Next Steps

Requests are processed in the order received. Please allow the Centers for Medicare & Medicaid Services (CMS) 30 days to process the request.

If the request is denied, a formal letter will be provided with an explanation, and a regular Final Demand Letter will be sent under separate cover. If the request is approved, the beneficiary will receive a bill for the amount specified (i.e., 25% of the settlement).

July 2025