Washington, DC (May 17, 2023) Today the Medicare Advocacy Recovery Coalition (MARC) applauded Senators Tim Scott (R-SC) and Maggie Hassan (D-NH) and Representatives Brad Schneider (D-IL) and Gus Bilirakis (R-FL) for introducing the Repair Abuses of MSP Payments Act (RAMP Act, S.1607/H.R.3388) in the U.S. Senate and the U.S. House of Representatives, respectively. This bipartisan and bicameral legislation advocates for significant changes to the Medicare Secondary Payer (MSP) system by modernizing the outdated and broken MSP “private cause of action” provision.
“This legislation is extremely important, as it addresses a growing problem faced by far too many Americans, one that harms Medicare beneficiairies and those trying to settle claims with beneficiaries. Our Coalition is grateful for the leadership of Representatives Schneider and Bilirakis and Senators Tim Scott and Hassan,” said Ken Stoller, Assistant Vice President with the American Property Casualty Insurance Association (APCIA) and Vice Chair of MARC. “A broad group of stakeholders across the country agrees that the MSP private cause of action should be modernized. The widespread support of the RAMP Act includes beneficiaries, insurers, plaintiff and defense lawyers, and many others,” noted Stoller.
While the initial MSP laws were created to ensure Medicare doesn’t pay when another entity is responsible for paying a beneficiary’s claim, the private cause of action never achieved that purpose and has been rendered obsolete by more recent law changes. Since 2007, the MSP statute ensures that every judgment, settlement, and award is reported to Medicare, Medicare Advantage and Part D plans. As such, the private cause of action is no longer necessary. Unfortunately, the private cause of action is preventing beneficiaries from resolving claims, ironically making Medicare the primary payer in cases it should not be.
“Our Coalition wants the MSP program to work effectively, efficiently, and economically for all involved as Congress intended. It is with confidence that we endorse the RAMP Act because it is a necessary step to ensure the MSP program is working to benefit all involved parties in a fair way. Sadly, the private cause of action has been abused and interferes with Medicare beneficiaries’ ability to resolve claims. The RAMP Act is the solution we’ve been waiting to see from Congress,” Stoller concluded.
MARC thanks Senator Tim Scott (R-SC), Senator Maggie Hassan (D-NH), Representative Brad Schneider (D-IL), and Representative Gus Bilirakis (R-FL) for their leadership on this important legislation, and looks forward to working with each of them to ensure this legislation is enacted during this Congress.
The Medicare Advocacy Recovery Coalition (MARC) is a national Coalition advocating for the improvement of the Medicare and Medicaid Secondary Payer (MSP) programs. The Coalition advocates for reforms to improve the MSP system and the process for Medicare and Medicaid beneficiaries and affected companies. MARC’s goal is to ensure that all stakeholders are provided timely resolution of disputes and the fair reimbursement of claims involving secondary payer issues.