Scott, Hassan introduce bipartisan legislation to close loopholes, protect Medicare funds for seniors

WASHINGTON - U.S. Senators Tim Scott (R-SC) and Maggie Hassan (D-NH) introduced the Repair Abuses of MSP Payments (RAMP) Act, bipartisan legislation to strengthen Medicare program integrity and prevent abuse within the Medicare Secondary Payer (MSP) system.

"Protecting Medicare is about keeping our promise to America's seniors," said Sen. Scott. "This bipartisan bill closes a loophole that has allowed Medicare dollars to slip through the cracks, strengthens accountability, and ensures both seniors and taxpayers are protected."

"As health insurance costs continue to soar for most Americans, this bipartisan legislation will close a loophole in our laws that let debt collectors further increase health care costs for Americans," said Sen. Hassan. "I'll continue to work with my colleagues across the aisle to tackle waste, fraud, and abuse, lower costs, and safeguard Medicare for generations to come."

The bill updates the MSP statute by eliminating a provision, known as the "Private Cause of Action." Established in 1986, this provision allows anyone who has suffered "damages" to sue their private insurance company if it fails to pay claims paid for by Medicare. Under current law, when a court orders an insurance company to pay, Medicare is never reimbursed for payments it has already made and whoever brings the suit keeps the Medicare funds. As a result, taxpayer funds may be wasted rather than returned to the Medicare Trust Fund.

In addition, all settlements, judgments, and awards are now required to be reported directly to the federal government, providing Medicare with full visibility into payments and reducing the need for private lawsuits to recover funds. Despite these modern reporting requirements, the remaining Private Cause of Action provision remains on the books, allowing people to take advantage of the current Medicare policy and launch hundreds of lawsuits. This interferes with beneficiaries' ability to settle cases and keeps Medicare as the primary payor.

By closing this loophole, the RAMP Act allows claims to timely settle so that Medicare is properly repaid when private insurers are responsible for covering a claim. The legislation builds on Sen. Scott's Provide Accurate Information Directly (PAID) Act, which is now law, to strengthen accountability, safeguard taxpayer funds, and help preserve Medicare for seniors who rely on the program.

Bill text can be found here.

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