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MSP Recovery Claims, Series LLC v. Plymouth Rock Assurance Corporation, Inc.

United States District Court, D. Massachusetts

December 12, 2019

MSP RECOVERY CLAIMS, SERIES LLC and SERIES 17-04-631, Plaintiffs,
v.
PLYMOUTH ROCK ASSURANCE CORPORATION, INC., and THE PLYMOUTH ROCK COMPANY, INC., Defendants.

          MEMORANDUM AND ORDER ON PLAINTIFFS' MOTION FOR RECONSIDERATION

          ALLISON D. BURROUGHS U.S. DISTRICT JUDGE

         MSP Recovery Claims, Series LLC and Series 17-04-631 (“Plaintiffs”) brought this putative class action against Plymouth Rock Assurance Corporation, Inc. and Plymouth Rock Company, Inc. (collectively “Plymouth Rock”) under the Medicare Second Payer Act (“MSPA”) as the assignee of a Medicare Advantage Organization (“MAO”). Plymouth Rock moved to dismiss the lawsuit and to strike the proposed class allegations. [ECF Nos. 8, 11]. The Court denied Plymouth Rock's motion to dismiss, [ECF No. 8], but granted the motion to strike, [ECF No. 11]. [ECF No. 26 (“Order”)].

         Presently before the Court is Plaintiffs' Motion for Reconsideration of the Order. [ECF No. 28]. For the reasons set forth below, Plaintiffs' Motion for Reconsideration [ECF No. 28] is DENIED.

         I. BACKGROUND

         A. Procedural Background

         Plaintiffs filed this action on August 13, 2018. [ECF No. 1]. On December 21, 2018, Plymouth Rock filed both its motion to dismiss, [ECF No. 8], and its motion to strike the class allegations, [ECF No. 11]. On July 18, 2019, the Court denied the motion to dismiss, but granted the motion to strike. See generally [Order]. Plaintiffs filed their motion for reconsideration on August 15, 2019. [ECF No. 28]. Plymouth Rock opposed on August 29, 2019, [ECF No. 29], and Plaintiffs responded on September 11, 2019, [ECF No. 32].

         B. Factual Background

         The following facts are drawn from the Complaint and the documents attached to it. [ECF No. 1 (“Complaint” or “Compl.”)]. A more complete version of the facts is provided in the Court's earlier Order. [Order at 2-7].

         Plaintiffs bring this action as the assignee of MAO Fallon Community Health Plan (“Fallon”). [Compl. ¶¶ 7, 14]. On April 12, 2012, an individual named A.C., who later enrolled in a Medicare Advantage plan administered by Fallon, was injured in an accident. [Id. ¶¶ 7-8]. Between April 16, 2012 and August 30, 2013, A.C. received medical services for injuries stemming from the accident. [Id. ¶ 9]. One of the medical providers treating A.C. billed Fallon $8, 106.30. [Id. ¶ 10]. Fallon paid $1, 782.02 to settle the charge. [Id.]

         A.C. subsequently sued the tortfeasor involved in the accident, who was insured by Plymouth Rock. [Id. ¶¶ 8, 11]. Plymouth Rock settled A.C.'s claim and reported the settlement to the Centers for Medicare and Medicaid Services. [Id. ¶ 11]. Consequently, Plymouth Rock became the primary payer for A.C.'s medical expenses arising from the accident. [Id.]. On June 19, 2019, Fallon assigned all rights to recover conditional payments to MSP Recovery, LLC, which subsequently assigned all of those rights to Series 17-04-631, a designated series of MSP Recovery, LLC. [ECF No. 1 at 53]. Plaintiffs claim that Plymouth Rock was aware that it was obligated to reimburse Fallon for the $1, 782.02 payment, but failed to pay. [Compl. ¶ 11].

         In addition to the specific payment in A.C.'s case, Plaintiffs proposed a putative class based on other alleged claims that Plymouth had failed to pay. [Compl. ¶ 51]. Plaintiffs proposed a class action on behalf of:

All Medicare Advantage Organizations, or their assignees, that provide benefits under Medicare Part C, in the United States of America and its territories, which made payments for a Medicare beneficiary's medical expenses where Defendant:
(1) is the primary payer by virtue of having settled a claim with Medicare beneficiary enrolled in a Medicare Advantage plan;
(2) settled a dispute to pay for personal injuries with a Medicare beneficiary enrolled in a Medicare Advantage plan; and
(3) failed to reimburse Medicare Advantage Organizations, or their assignees, the payments provided for medical items and services related ...

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