LifeWallet Acquires Assignment of Additional MSP Claims with an Overall Paid Amount Exceeding $10.6 billion Comprised of Over 450,000 Medicare Members and Announces it Secured a Waiver of Acceleration on a Second Loan Agreement in the Event of a Negative Going Concern
LifeWallet (NASDAQ: LIFW) has acquired recovery rights to additional Medicare Secondary Payer claims, encompassing over 450,000 Medicare members with an estimated total claims paid amount exceeding $10.6 billion. This acquisition strengthens LifeWallet's position in healthcare claims recovery and improper payment identification.
The company will process these claims using its LifeWallet Palantir clearinghouse system, a sophisticated data analytics platform developed in partnership with Palantir Technologies. This system enhances LifeWallet's ability to identify improper payments and enforce Primary Payer obligations.
Additionally, LifeWallet secured waivers from Hazel Partners Holdings and Virage Capital Partners on acceleration clauses in their respective loan agreements. These waivers apply in the event of a negative going concern opinion for the fiscal year ending December 31, 2024, providing LifeWallet with financial flexibility.
LifeWallet (NASDAQ: LIFW) ha acquisito i diritti di recupero su ulteriori richieste Medicare Secondario Payer, comprendendo oltre 450.000 membri Medicare con un importo totale stimato delle richieste pagate superiore a $10,6 miliardi. Questa acquisizione rafforza la posizione di LifeWallet nel recupero delle richieste sanitarie e nell'identificazione dei pagamenti impropri.
L'azienda elaborerà queste richieste utilizzando il suo sistema di clearinghouse LifeWallet Palantir, una piattaforma di analisi dei dati sofisticata sviluppata in collaborazione con Palantir Technologies. Questo sistema migliora la capacità di LifeWallet di identificare i pagamenti impropri e di far rispettare gli obblighi del Payer Primario.
Inoltre, LifeWallet ha ottenuto rinunce da Hazel Partners Holdings e Virage Capital Partners riguardo le clausole di accelerazione nei rispettivi accordi di prestito. Queste rinunce si applicano in caso di un'opinione negativa sulla continuità aziendale per l'anno fiscale che termina il 31 dicembre 2024, fornendo a LifeWallet una maggiore flessibilità finanziaria.
LifeWallet (NASDAQ: LIFW) ha adquirido los derechos de recuperación de reclamaciones adicionales del Medicare como Pagador Secundario, abarcando a más de 450,000 miembros de Medicare con un monto total estimado de reclamaciones pagadas que supera los $10.6 mil millones. Esta adquisición refuerza la posición de LifeWallet en la recuperación de reclamaciones de atención médica y en la identificación de pagos indebidos.
La empresa procesará estas reclamaciones utilizando su sistema de clearinghouse LifeWallet Palantir, una plataforma sofisticada de análisis de datos desarrollada en asociación con Palantir Technologies. Este sistema mejora la capacidad de LifeWallet para identificar pagos indebidos y hacer cumplir las obligaciones del Pagador Primario.
Además, LifeWallet obtuvo exenciones de Hazel Partners Holdings y Virage Capital Partners sobre las cláusulas de aceleración en sus respectivos acuerdos de préstamo. Estas exenciones se aplican en caso de una opinión negativa sobre la continuidad empresarial para el año fiscal que termina el 31 de diciembre de 2024, proporcionando a LifeWallet flexibilidad financiera.
LifeWallet (NASDAQ: LIFW)는 450,000명의 메디케어 가입자를 포함하여 추가적인 메디케어 제2지급자 청구권을 인수하였습니다. 이 청구의 총 지급 금액은 $10.6억 달러를 초과할 것으로 예상됩니다. 이번 인수는 건강 관리 청구 회수 및 부정 지급 식별에 있어서 LifeWallet의 입지를 강화합니다.
회사는 LifeWallet Palantir 클리어링하우스 시스템을 사용하여 이러한 청구를 처리할 예정이며, 이 시스템은 Palantir Technologies와 협력하여 개발된 정교한 데이터 분석 플랫폼입니다. 이 시스템은 LifeWallet이 부정 지급을 식별하고 1차 지급자 의무를 강제하는 능력을 향상시킵니다.
또한, LifeWallet은 Hazel Partners Holdings와 Virage Capital Partners로부터 각자의 대출 계약에 대한 가속 조항에 대한 면제를 확보했습니다. 이러한 면제는 2024년 12월 31일에 종료되는 회계연도에 대한 부정적인 계속 기업 의견이 나올 경우에 적용되며, LifeWallet에 재정적 유연성을 제공합니다.
LifeWallet (NASDAQ: LIFW) a acquis des droits de recouvrement sur des demandes supplémentaires de Medicare en tant que Payeur Secondaire, englobant plus de 450 000 membres Medicare avec un montant total estimé des demandes payées dépassant 10,6 milliards de dollars. Cette acquisition renforce la position de LifeWallet dans le recouvrement des demandes de soins de santé et l'identification des paiements indus.
L'entreprise traitera ces demandes en utilisant son système de clearinghouse LifeWallet Palantir, une plateforme d'analyse de données sophistiquée développée en partenariat avec Palantir Technologies. Ce système améliore la capacité de LifeWallet à identifier les paiements indus et à faire respecter les obligations du Payeur Primaire.
De plus, LifeWallet a obtenu des dérogations de Hazel Partners Holdings et Virage Capital Partners concernant les clauses d'accélération dans leurs contrats de prêt respectifs. Ces dérogations s'appliquent en cas d'opinion négative sur la continuité de l'exploitation pour l'exercice se terminant le 31 décembre 2024, offrant à LifeWallet une flexibilité financière.
LifeWallet (NASDAQ: LIFW) hat sich die Rückforderungsrechte auf weitere Medicare Secondary Payer-Anträge gesichert, die über 450.000 Medicare-Mitglieder umfassen und deren Gesamtanspruchszahlung voraussichtlich mehr als 10,6 Milliarden Dollar übersteigt. Diese Übernahme stärkt die Position von LifeWallet in der Rückforderung von Gesundheitsansprüchen und der Identifizierung von Fehlzahlungen.
Das Unternehmen wird diese Ansprüche mit seinem LifeWallet Palantir Clearinghouse-System verarbeiten, einer anspruchsvollen Datenanalyseplattform, die in Zusammenarbeit mit Palantir Technologies entwickelt wurde. Dieses System verbessert die Fähigkeit von LifeWallet, fehlerhafte Zahlungen zu identifizieren und die Verpflichtungen des Primary Payers durchzusetzen.
Zusätzlich hat LifeWallet von Hazel Partners Holdings und Virage Capital Partners Befreiungen von Beschleunigungsklauseln in ihren jeweiligen Darlehensverträgen erhalten. Diese Befreiungen greifen im Falle eines negativen Fortbestehensberichts für das zum 31. Dezember 2024 endende Geschäftsjahr und bieten LifeWallet finanzielle Flexibilität.
- Acquired recovery rights to claims with total paid amount exceeding $10.6 billion
- Expanded claim portfolio by over 450,000 Medicare members
- Secured waivers on loan acceleration clauses from two major creditors
- Utilization of advanced data analytics system for improved claim processing
- Potential for negative going concern opinion in fiscal year 2024
- Ongoing need for expense reductions and debt restructuring
- Monitoring cash deployment and working on increasing liquidity inflows
Insights
The acquisition of additional MSP claims with a paid amount exceeding
The integration of these claims into LifeWallet's Palantir-powered clearinghouse system is a strategic move that could enhance the company's ability to identify and recover improper payments more efficiently. This technological edge, combined with their existing legal infrastructure, positions LifeWallet to potentially improve their recovery rates and operational efficiency.
However, the waiver of acceleration clauses from both Hazel Partners and Virage Capital Partners in the event of a negative going concern opinion is a red flag. This suggests that LifeWallet may be facing financial challenges that could lead to such an opinion. While these waivers provide some breathing room, they also indicate potential liquidity issues that investors should closely monitor.
The acquisition of additional MSP claims significantly expands LifeWallet's potential for legal recovery actions. However, the company's mention of existing settlements with insurance companies is noteworthy. This could streamline the recovery process for a portion of the newly acquired claims, potentially reducing legal costs and accelerating cash flow.
The waivers obtained from Hazel Partners and Virage Capital Partners regarding the acceleration clauses are important legal maneuvers. These waivers provide LifeWallet with important financial flexibility, potentially averting a liquidity crisis in the event of a negative going concern opinion. However, the need for such waivers suggests underlying financial instability that could lead to increased scrutiny from regulators and potential legal challenges from shareholders or creditors.
Investors should be aware that while these legal strategies may provide short-term relief, they also signal potential long-term risks that could impact the company's financial stability and legal standing.
MIAMI, Oct. 02, 2024 (GLOBE NEWSWIRE) -- MSP Recovery, Inc. d/b/a LifeWallet (NASDAQ: LIFW) (“LifeWallet” or “the Company”), as previously announced on August 2, 2024, today LifeWallet entered into a definitive agreement with Hazel Partners Holdings LLC consistent with the letter agreement.1 LifeWallet acquired the recovery rights to claims as per its assignment of additional Medicare Secondary Payer claims consisting of more than 450,000 Medicare members, as documented by health insurance plans, with an estimated total claims paid amount exceeding
This latest assignment of Medicare Secondary Payer claims exemplifies LifeWallet’s continued progress in acquiring additional healthcare claims, paving the way for the discovery and potential recovery of improperly paid claims on the part of Medicare Payers. Because of LifeWallet’s existing settlements with insurance companies, any claims pertaining to insurance companies that have already been settled, would be processed under the terms of the settlement without having to resort to costly and time-consuming litigation.
In addition to providing historic claims payment reconciliation, these claims will be onboarded onto the LifeWallet Palantir clearinghouse system, a sophisticated data analytics system created through an exclusive healthcare partnership with Palantir Technologies (NYSE: PLTR). This system utilizes the Palantir Foundry platform through the development of new technological tools and machine learning. It captures and manages healthcare data effectively, enhancing the identification of improper payments.
This further enhances LifeWallet’s Chase to Pay model, utilizing its extensive legal infrastructure to enforce Primary Payer obligations through years of federal and state litigation to the extent the health insurance plans are signed. The Company continues to create reimbursement recovery solutions for health insurance plans and healthcare providers, discovering Medicare liens owed to them, capturing instances where another payer should be paying for medical bills, saving the health insurance plans money by not having to pay claims they are not responsible for, and recovering conditional payments from responsible primary payers, such as property and casualty insurers.
LifeWallet’s CIO, Christopher Miranda, said of today’s announcement, “This builds upon the Company’s more than ten-year commitment to revolutionize the fragmented healthcare reimbursement system with data-driven solutions, resulting in improved outcomes for healthcare payers, providers, leading to improved patient care.”
Waiver from Hazel Partners Holdings, LLC and Virage Capital Partners
LifeWallet also announces the waiver of a payment acceleration clause pursuant to a material credit agreement. Hazel Partners Holdings, LLC (“Hazel”) agreed to waive a provision of the Second Amended and Restated Credit Agreement, as amended, that otherwise would have accelerated the payment of amounts due in the event that the Company receives a negative going concern opinion from its auditors. This waiver only applies in the event that the Company receives a negative going concern opinion for the fiscal year ending December 31, 2024. This is in addition to a previous waiver of acceleration also granted by its largest creditor, Virage Capital Partners (“Virage”). On September 6, 2024, Virage agreed to waive a provision of the Company’s Master Transaction Agreement that would accelerate the payment of amounts due to Virage in the event the Company receives a negative going concern opinion from its auditors for the year ending December 31, 2024. The company continues to work on expense reductions and efforts to restructure existing debt while monitoring its deployment of cash and increasing its liquidity inflows.
Forward Looking Statements
This 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 LifeWallet
Founded in 2014 as MSP Recovery, LifeWallet 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. LifeWallet provides comprehensive solutions for multiple industries including healthcare, legal, and sports NIL. For more information, visit: LIFEWALLET.COM.
CONTACTS
Media
ICR, Inc.
MSP@icrinc.com
Investors
Investors@LifeWallet.com
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1 On August 2, 2024, Subrogation Holdings, LLC, a wholly owned subsidiary of MSP Recovery, Inc. d/b/a LifeWallet (the “Company”) entered into a letter agreement (the “HPH Letter Agreement”) whereby the parties have set out the terms to amend the Second Amended and Restated Credit Agreement with Hazel Partners Holdings LLC (the “Credit Agreement”), to: (i) extend the period for the Company to draw up to
2 “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.
FAQ
What is the value of the Medicare Secondary Payer claims acquired by LifeWallet (LIFW)?
How many Medicare members are included in LifeWallet's (LIFW) recent claim acquisition?
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