LifeWallet Launches Initiative to Secure New Agreements with Health Plans, Providers, Insurers and Attorneys, Continues Cost Cutting Efforts, and Announces it Secured a Waiver of Acceleration Based on a Negative Going Concern from its Largest Creditor
September 08 2024 - 11:53PM
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 announces
an initiative to secure new agreements with health plans,
providers, insurers and attorneys as it continues to make
significant strides in revolutionizing healthcare reimbursement
through data-driven solutions and strategic partnerships.
This initiative is expected to generate revenue
through fees charged on savings from unnecessary Medicare secondary
payments. As previously announced, key developments include:
- Clearinghouse System: In partnership
with Palantir Technologies, Inc. (NYSE: PLTR) (“Palantir”),
LifeWallet continues to enhance its “Chase to Pay” model with a
sophisticated clearinghouse solution designed to build an expansive
repository of data that can be used to determine medical conditions
as well as payer obligations. This system utilizes the Palantir
Foundry platform, through the development of new technological
tools and machine learning to capture and manage healthcare data
effectively.
- Settlements with Property and Casualty
(P&C) Insurers: As previously announced, LifeWallet has reached
settlements with multiple P&C insurers, demonstrating the
viability of its approach. These agreements include the provision
of historical data (up to 10 years) and future claims data sharing;
long-term agreements to resolve Medicare claims cooperatively;
P&C Insurers’ agreement that they are Primary Payers1 for any
unreimbursed Medicare liens that LifeWallet identifies from data
sharing; and the P&C Insurers’ agreement to assign all rights
to collect against other third parties that either failed to pay
liens or collected twice from Medicare funds and the P&C
Insurers.
- Ongoing Negotiations: LifeWallet
continues to make progress in ongoing negotiations with additional
P&C insurers to resolve claims on similar terms, potentially
expanding the reach of its Medicare claims resolution system. These
settlements provide a going-forward process to collaboratively and
timely resolve future claims and share important historical
data. This is expected to enhance LifeWallet’s claims
reconciliation capabilities by identifying claims owned by
LifeWallet that it may have the right to recover on, while
benefitting Medicare plans and downstream entities across the
mainland U.S. and Puerto Rico.
LifeWallet Cost Cutting
Efforts
LifeWallet strategically reduced its operating
costs in 2023 and continues to do so in 2024. These cost reductions
do not impact the systems the Company has already created to
support recovery efforts of the claims owned by the Company or
other resources available to third parties. The Company anticipates
these reductions could continue to contribute savings to operating
expenses for the year ending December 31, 2024.
"We continue to make significant strides in the
right direction, consistently evaluating our operations and
strategies,” said LifeWallet CEO, John H. Ruiz. “Our team remains
committed to identifying innovative ways to streamline our
processes and reduce costs without compromising the quality of our
services.”
Waiver from Virage Capital
Partners
LifeWallet has secured a waiver of acceleration
based on a negative going concern from its largest creditor and is
in similar advanced negotiations with its second largest creditor.
On September 6, 2024, Virage Capital Partners (“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.
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 any potential future
transaction with Virage, as well as 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
MediaICR,
Inc.MSP@icrinc.com
InvestorsInvestors@LifeWallet.com
_______________________________________1 “Primary
Plans” or “Primary Payers,” when used in the Medicare Secondary
Payer context, means “any entity that is or was required or
responsible to make payment with respect to an item or service (or
any portion thereof) under a primary plan. These entities include,
but are not limited to, insurers or self-insurers, third party
administrators, and all employers that sponsor or contribute to
group health plans or large group health plans.” 42 C.F.R. §
411.21.
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