set-aside may submit to the Secretary the set- 
aside, including appropriate supporting docu-
mentation specified by the Secretary, for ap-
proval of the set-aside as a qualified Medicare 
set-aside. The set-aside shall be submitted in 
accordance with a procedure specified by the 
Secretary. 
‘‘(B) AUTOMATIC APPROVAL UNLESS DIS-
APPROVED.—A Medicare set-aside submitted 
under subparagraph (A) shall be deemed a 
qualified Medicare set-aside unless the Sec-
retary determines and provides notice under 
subparagraph (C) that the Medicare set-aside 
does not satisfy the requirements of paragraph 
(2)(A) because the amount of the proposed 
Medicare set-aside is based on a substantial 
material error and is not supported by the doc-
umentation submitted under subparagraph (A). 
‘‘(C) NOTICE OF DETERMINATION OF DIS-
APPROVAL.—Not later than 60 days after the 
date on which the Secretary receives a submis-
sion under subparagraph (A), the Secretary 
shall notify in writing the parties to the work-
ers’ compensation settlement agreement of the 
determination under subparagraph (B). If the 
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determination disapproves such submission the 
Secretary shall include with such notification 
the specific reasons for the disapproval. A de-
termination that disapproves a submission is 
not valid if the determination does not include 
a specific explanation of each deficiency of the 
submission. 
‘‘(4) SAFE
HARBOR
FOR
CERTAIN
MEDICARE 
SET-ASIDES.— 
‘‘(A) IN GENERAL.—A Medicare set-aside 
of a workers’ compensation settlement agree-
ment shall be deemed a qualified Medicare set- 
aside if the Medicare set-aside amount is the 
safe harbor amount for the agreement. 
‘‘(B) SAFE HARBOR AMOUNT DEFINED.— 
For purposes of this paragraph, the term ‘safe 
harbor amount’ means, for a workers’ com-
pensation settlement agreement, 10 percent of 
the present value of the agreement (as deter-
mined under subsection (l)(3)). 
‘‘(C) RULE
OF
CONSTRUCTION.—In the 
case of a workers’ compensation settlement 
agreement with a Medicare set-aside that is 
deemed a qualified Medicare set-aside under 
subparagraph (A), the fact that the workers’ 
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compensation claimant or workers’ compensa-
tion payer involved may elect direct payment 
under paragraph (6)(A) or an adjustment 
under paragraph (2)(C)(iii) shall not be con-
strued as prohibiting such claimant or payer 
from basing the set-aside amount on the safe 
harbor amount for such agreement. 
‘‘(5) APPEALS.— 
‘‘(A) IN GENERAL.—A party to a workers’ 
compensation settlement agreement that is dis-
satisfied with a determination under paragraph 
(3)(B), upon filing a request for reconsideration 
with the Secretary not later than 60 days after 
the date of notice of such determination, shall 
be entitled to— 
‘‘(i) reconsideration of the determina-
tion by the Secretary (with respect to such 
determination); 
‘‘(ii) a hearing before an administra-
tive judge thereon; and 
‘‘(iii) judicial review of the Secretary’s 
final determination after such hearing. 
‘‘(B) DEADLINES FOR DECISIONS.— 
‘‘(i) RECONSIDERATIONS.— 
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