Under section 9319 of PL. 99-272, Medicare became the secondary payer for the disabled
active individual who was covered under his/her own or any family member's LGHP. An
“active individual” was an employee, an employer, a self-employed individual (such
as the employer), an individual associated with the employer in a business relationship
or a member of the family of any of these persons.
Often, the disabled person was the family member of the employee, employer, or individual
associated with the employer in a business relationship. This meant that a disabled
person who was covered under the LGHP of a spouse, parent, or any other family member
was considered to be an active individual even though the disabled individual was
not actually the worker.