LifeWallet Announces Consolidation of All Lines of Business Under the MSP Recovery Brand, While Advancing Initiatives That Align With the Newly Formed Department of Government Efficiency (DOGE)
06 December 2024 - 4:52PM
MSP Recovery, Inc. d/b/a LifeWallet (NASDAQ: LIFW) (“LifeWallet,”
or the “Company”), a Medicare, Medicaid, commercial, and secondary
payer reimbursement recovery and technology leader, today announced
the consolidation of all its products, services, and lines of
business under a unified company brand: MSP Recovery. The return to
its original name reflects the Company’s commitment to the
expansion of its core business, innovating technological solutions
to achieve secondary payer reimbursement recoveries.
In connection therewith, the Company’s common stock will begin
trading on Nasdaq under the ticker symbol “MSPR” on December 9,
2024. This ticker symbol will replace the Company’s current ticker
symbol for its common stock, “LIFW.” Additionally, the Company’s
publicly traded warrants to purchase common stock will begin
trading under the ticker symbols “MSPRW” and “MSPRZ.” These ticker
symbols will replace the Company’s current ticker symbols for its
publicly traded warrants, “LIFWW” and “LIFWZ,” respectively.
The return to the MSP Recovery name highlights the Company’s
dedication to its roots while embracing future opportunities for
growth. By leveraging its extensive expertise in Medicare Secondary
Payer reimbursement recovery and advanced proprietary technology,
MSP Recovery remains at the forefront of driving efficiency,
creating solutions, and optimizing outcomes for the healthcare and
legal industries.
MSP Recovery Founder and CEO John H. Ruiz said, “MSP Recovery
has always been synonymous with our commitment to innovation,
integrity, and excellence in the healthcare reimbursement recovery
space.” He continued, "This change underscores our expanding core
business operations and commitment to combating systemic Medicare
waste, affecting the nation’s healthcare system and patient care.
Our decade-long efforts to reduce healthcare costs and improve
efficiency aligns with initiatives of President-elect Donald
Trump’s newly formed advisory committee, Department of Government
Efficiency (DOGE).”
MSP Recovery is dedicated to discovering and recovering
substantial improper payments within the Medicare and Medicaid
systems, particularly focusing on the Medicare Advantage program.
These improper payments often result from communication failures
among stakeholders, leading to Medicare erroneously covering
accident-related injuries and failing to recuperate those
funds.
- Litigation to Recover Improper Payments: As previously
announced the Company has agreed to five settlements against
property and casualty insurers, in aggregate totaling more than $10
million dollars to settle historical claims of improper payments,
as well as obtain data to pursue claims for additional improper
payments and establish a clearinghouse to efficiently settle future
claims with certain P&C Insurers.
- Additional Claims Acquisition: As previously announced,
the Company paid approximately $2 million dollars to acquire
additional Medicare Secondary Payer (MSP) claims with an overall
Paid Amount1 exceeding $10.6 billion, encompassing more than
450,000 Medicare members. This claims acquisition enhances the
Company's ability to identify and recover improper payments.2
- Technological Advancements: As previously announced, the
Company developed the LifeWallet/Palantir clearinghouse that
connects P&C Insurers to health plans, allowing for
elimination of waste from improper payments made for
accident-related injuries.
Forward Looking StatementsThis press release
contains forward-looking statements within the meaning of the
federal securities laws. Forward-looking statements may generally
be identified by the use of words such as “anticipate,” “believe,”
“expect,” “intend,” “plan," and “will” or, in each case, their
negative, or other variations or comparable terminology. These
forward-looking statements include all matters that are not
historical facts, including for example statements regarding
potential future settlements. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. As a result, these statements are not guarantees of future
performance or results and actual events may differ materially from
those expressed in or suggested by the forward-looking statements.
Any forward-looking statement made by the Company herein speaks
only as of the date made. New risks and uncertainties come up from
time to time, and it is impossible for the Company to predict or
identify all such events or how they may affect it. The Company has
no obligation, and does not intend, to update any forward-looking
statements after the date hereof, except as required by federal
securities laws. Factors that could cause these differences
include, but are not limited to, the Company’s ability to
capitalize on its assignment agreements and recover monies that
were paid by the assignors; the inherent uncertainty surrounding
settlement negotiations and/or litigation, including with respect
to both the amount and timing of any such results; the success of
the Company's scheduled settlement mediations; the validity of the
assignments of claims to the Company; negative publicity concerning
healthcare data analytics and payment accuracy; and those other
factors included in the Company’s Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other reports filed by it with
the SEC. These statements constitute the Company’s cautionary
statements under the Private Securities Litigation Reform Act of
1995.
About MSP Recovery
Founded in 2014, MSP Recovery has become a Medicare, Medicaid,
commercial, and secondary payer reimbursement recovery leader,
disrupting the antiquated healthcare reimbursement system with
data-driven solutions to secure recoveries from responsible
parties. MSP Recovery provides comprehensive solutions for multiple
industries including healthcare and legal. For more information,
visit: LIFEWALLET.COM.
CONTACTS: Media Media@lifewallet.com Investors
Investors@lifewallet.com
________________________
1 “Paid Amount” (a/k/a Medicare Paid Rate or wholesale price)
means the amount paid to the provider from the health plan or
insurer. This amount varies based on the party making payment. For
example, Medicare typically pays a lower fee for service rate than
commercial insurers. The Paid Amount is derived from the Claims
data we receive from our Assignors. In the limited instances where
the data received lacks a paid value, our team calculates the Paid
Amount with a formula. The formula used provides rates for
outpatient services and is derived from the customary rate at the
95th percentile as it appears from standard industry commercial
rates or, where that data is unavailable, the Billed Amount if
present in the data. These amounts are then adjusted to account for
the customary Medicare adjustment to arrive at the calculated Paid
Amount. Management believes that this formula provides a
conservative estimate for the Medicare paid amount rate, based on
industry studies which show the range of differences between
private insurers and Medicare rates for outpatient services. We
periodically update this formula to enhance the calculated paid
amount where that information is not provided in the data received
from our Assignors. Management believes this measure provides a
useful baseline for potential recoveries, but it is not a measure
of the total amount that may be recovered in respect of potentially
recoverable Claims, which in turn may be influenced by any
applicable potential statutory recoveries such as double damages or
fines. Where we have to extrapolate a Paid Amount to establish
damages, the calculated amount may be contested by opposing
parties. The figures pertaining to Medicare Member Lives as well as
the paid amount were tabulated based on the data provided by health
care plans; these figures may be subject to adjustment upon further
investigation of the paid amounts reflected by the health plans.2
https://investor.lifewallet.com/news-releases/news-release-details/lifewallet-acquires-assignmentadditional-msp-claims-overall
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