What does MSP stand for in the context of Medicare?

Medicare Secondary Payer (MSP) refers to a situation in which Medicare does not pay first for healthcare services; instead, another payer, such as an employer-sponsor group health plan or another insurance policy, takes on that responsibility. This typically occurs when the individual is covered by multiple insurance plans, and understanding the MSP rules is vital for determining the priority of payment among insurers.

In this context, the term is crucial for professionals working with Medicare recipients, as it helps ensure proper coordination of benefits and helps beneficiaries receive the appropriate coverage for their healthcare expenses. Understanding MSP is also significant for compliance and financial planning in managing benefits effectively.