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Medicare's Compensation: A Case Study

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Since 1965, Medicare was the primary payer for all Medicare covered health services except for services covered by Worker’s Compensation. From 1964 until 1980, Medicare paid benefits without considering whether another insurer could potentially cover the losses. Although litigation involving Medicare beneficiaries certainly existed, the government made no effort to subrogate claims by beneficiaries in the event that Medicare had already paid for medical expenses resulting from the injuries involved in the litigation.

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