Opinion ID: 2648174
Heading Depth: 4
Heading Rank: 2

Heading: Jack McNutt

Text: Like Haro, Jack McNutt was injured in a car accident and Medicare paid his medical costs. McNutt’s personal injury lawsuit settled and McNutt notified Medicare of the settlement. Medicare responded with a letter requesting reimbursement of $26,487.07. The letter stated that McNutt was required to pay within 60 days of the receipt of the settlement proceeds and that interest would start to accrue if payment was not received within that time. The letter also informed McNutt of his rights to appeal and seek waiver of the reimbursement obligation. McNutt appealed the reimbursement determination. 12 HARO V. SEBELIUS After Medicare sent McNutt a notice of the Secretary’s intent to refer the debt to the Department of Treasury, McNutt wrote a letter of “appeal,” but with his letter he enclosed a check for $11,366.58, the amount he believed he owed. Medicare sent McNutt an adjusted demand. Because of McNutt’s earlier payment, only $1,422.93 (including $13.36 in interest) remained outstanding. Medicare notified McNutt that his remaining reimbursement payment “should” be made within 30 days. McNutt sought reconsideration of that amount, and the Secretary acknowledged that notice of intent to refer the debt to Treasury was sent in error.2 Medicare then reduced McNutt’s total reimbursement amount again, and McNutt paid the remaining balance, plus interest. His administrative appeal was still pending at the time this appeal was filed. At the administrative level, McNutt did not challenge the Secretary’s practice of demanding up front reimbursement.