This past February, CMS published a MSP exemption as required by the SMART legislation. On November 15th of each year, SMART requires the Secretary to publish calculations for this important exemption that applies liability settlements, judgments, awards or other payments involving physical trauma. Once published the rate would take effect for the following calendar year. Presently, the threshold amount is set at $1,000 or less which meant that even if CMS became aware of a physical trauma case that settled for $1,000 or less involving a Medicare beneficiary, it would not pursue any claims it has under the Medicare Secondary Payer Act. Of course, when CMS published this number, the MIR threshold for data reporting was for liability claims over $2,000 with a settlement, judgment, award or other payment. This created confusion.