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   Division of Third Party Liability

Third-Party Liability (TPL) refers to the responsibility of third party coverage other than Medicaid to pay for medical cost. Section 1902 (a) (25) of the Social Security Act requires that States take all reasonable measures to ascertain the legal liability of third parties to pay for medical services furnished to a Medicaid beneficiary. Medicaid by law is the payor of last resort all other third party coverage must be exhausted before Medicaid is billed. South Carolina law, Section 43-7-410(I), defines a third party as an individual, entity, or program that is or may be liable by contract , agreement, or statute, to pay all or part of the medical cost of injury, disease, or disability of an applicant or beneficiary.

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