Repair Abuses of MSP Payments (RAMP) Act
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This bill would limit private lawsuits for Medicare secondary payer violations to cases involving group health plans.
What it does
This bill would limit the circumstances under which private parties can sue insurance plans for failing to make primary payments when Medicare is the secondary payer. Currently, such lawsuits are permitted against various entities, including workers' compensation, automobile, liability, and no-fault insurance plans. This legislation proposes to restrict that private right of action exclusively to cases involving group health plans.
Who is affected
This bill affects individuals or entities seeking to initiate private legal actions against specific types of insurance plans regarding Medicare secondary payer disputes. It specifically impacts workers' compensation plans, automobile or liability insurance plans, and no-fault insurance plans by removing them from the scope of the private right of action for primary payment failures. Group health plans remain subject to these private rights of action under the proposed changes.
Key provisions
- Restriction of private right of action for Medicare secondary payments. The bill limits the circumstances under which a private right of action may be brought against insurance plans that fail to provide appropriate primary payment when Medicare is the secondary payer.
- Limitation of liability to group health plans. The bill narrows the scope of the private right of action provision to apply exclusively to group health plans, removing it for workers' compensation, automobile, liability, and no-fault insurance plans.
Fiscal impact
Not applicable: No CBO cost estimate available
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
This bill modifies existing Medicare Secondary Payer (MSP) laws by narrowing the scope of the private right of action currently available against primary insurance plans. It restricts this legal recourse specifically to group health plans, removing the existing private right of action against workers' compensation, automobile, liability, and no-fault insurance plans.
Stated purpose
The bill aims to limit the scope of private legal actions regarding Medicare secondary payer obligations by restricting the private right of action to group health plans only, excluding workers' compensation, liability, and no-fault insurance plans.