New M&A insurance risk for buyers: Medicare-related settlement clawback

January 2011
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New M&A insurance risk for buyers: Medicare-related settlement clawback

At a glance

With the US government now recovering Medicare spending for healthcare expenses related to third party harm, potential buyers should include potential Medicare liability in their due diligence.

The US government has begun to exercise its power to recover Medicare spending for healthcare provided to people who suffered harm through the liability of a third party. This government emphasis on recovering Medicare expenditures opens a new source of target company risk for companies in many sectors, including retail and consumer products, agribusiness, pharmaceuticals, mining and industrial manufacturing. Potential buyers should include an assessment of Medicare liability in their due diligence efforts.