LifeWallet Announces a Comprehensive Settlement with 10 Affiliated Property & Casualty Insurers, Doing Business in 15 States

CORAL GABLES, Fla., April 18, 2024 (GLOBE NEWSWIRE) -- MSP Recovery, Inc. d/b/a LifeWallet (NASDAQ: LIFW) (“LifeWallet” or “the Company”) announces another comprehensive settlement with 10 affiliated property and casualty insurers (“P&C Insurers”) that write personal lines of P&C insurance in 15 states. In addition to settling existing claims, the settlement establishes a going-forward process to collaboratively and timely resolve future claims, as well as share important historical data that is expected to enhance LifeWallet’s claims reconciliation capabilities, benefiting its Medicare clients across the mainland U.S. and Puerto Rico. The settlement includes:

• The P&C Insurers’ agreement to provide historical data for claimants and also assist LifeWallet in reconciling its relevant current and future assigned Medicare claims;
• The carrier will assign to LifeWallet all rights to collect additional sums from plaintiff attorneys and medical providers;
• A 10-year agreement to resolve cooperatively, or through binding mediation, relevant Medicare claims (liens) that LifeWallet acquires in the future and non-Medicare claims that it owns today; and
• The P&C Insurers’ agreement that they may be primary payers for any unreimbursed Medicare lien that LifeWallet identifies from data sharing, and the property and casualty insurer’s 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.

LifeWallet is currently in negotiations with multiple other property and casualty insurers to resolve claims on a similar basis. The settlement announced today follows a comprehensive settlement announced by LifeWallet on Mar 3, 2024 with 28 affiliated P&C Insurers.

LifeWallet continues to implement the terms of the March 3rd settlement, through the processing of historical claims data, recovery of claims against other responsible parties, and implementation of LifeWallet’s clearinghouse, which runs on AI-based functions, including natural language processing and machine learning. As noted, this builds upon the Company’s previously announced initiatives: “MSP Recovery and Palantir to Transform Connectivity Across the U.S. Healthcare System” and “LifeWallet Announces Significant Enhancements to LifeWallet Health with Advanced Tools for Providers and Patients.”¹