U.S. Senators Marsha Blackburn (R-Tenn.) and Catherine Cortez Masto (D-Nev.) have introduced the Medicare Advantage Prompt Pay Act, a bipartisan and bicameral bill aimed at improving payment practices within the Medicare Advantage (MA) system. The legislation seeks to ensure timely payments to healthcare providers who work with MA plans and protect seniors from receiving delayed or unexpected medical bills after obtaining necessary care. The House companion bill is led by Representatives Jodey Arrington (R-Texas-19) and Linda Sánchez (D-Calif.-38).
“Tennessee seniors should not have to worry about whether their Medicare Advantage plan will pay for their care in a timely manner,” said Senator Blackburn. “The Medicare Advantage Prompt Pay Act would improve Medicare billing practices by offering certainty to health care providers who contract with MA plans, ensuring that seniors are not burdened by unfair or overdue bills.”
Senator Cortez Masto added, “Nevadans who rely on Medicare Advantage deserve the peace of mind that when they go to the doctor’s office or hospital, their MA plan will pay providers for their care in a timely manner, and they won’t be sent a delayed bill many months later. This bipartisan legislation makes commonsense fixes to Medicare Advantage’s billing practices that will help health care providers and patients by bringing transparency and stability to the program.”
House Budget Chairman Jodey Arrington commented, “Medicare Advantage plans are delaying payments to rural hospitals and providers – resulting in service cuts, staff shortages, forced closures, and patients with unexpected medical bills months or even years later. My bipartisan Medicare Advantage Prompt Pay Act fixes this problem by requiring plans to pay hospitals and doctors on time or face penalty. By holding plans accountable and making the process more transparent, this bill protects patients, supports the hospitals and doctors who care for them, and ensures Medicare Advantage works as intended.”
Representative Linda Sánchez noted, “More than half of seniors eligible for Medicare are enrolled in Medicare Advantage. However, too many are hit with confusing medical bills due to delayed and inconsistent Medicare Advantage billing practices. Our bipartisan bill will bring much-needed clarity to the system, ensuring healthcare providers are paid promptly and patients aren’t hit with unexpected bills long after they received care.”
The proposed legislation has received support from several organizations including the Federation of American Hospitals (FAH), American Hospital Association (AHA), National Rural Health Association (NRHA), American Academy of Family Physicians (AAFP), America’s Essential Hospitals (AEH), American Society of Anesthesiologists, American Psychiatric Association (APA), Bipartisan Policy Center Action (BPC Action), Nevada Hospital Association, Texas Hospital Association, California Hospital Association, Vizient, and OCHIN.
Patrick Kelly, President and CEO of Nevada Hospital Association stated: “The Nevada Hospital Association supports Senator Cortez Masto’s Medicare Advantage Prompt Pay Act which ensures Medicare Advantage Plans comply with stricter prompt payment requirements for healthcare providers. Establishing clear payment standards will promote timely reimbursement, reduce administrative challenges, and strengthen patient care. We appreciate Senator Cortez Masto’s leadership in championing this important legislation.”
Charlene MacDonald from FAH said: “Too often arbitrary delays and denials threaten seniors’ access to care and further strain hospital finances. This commonsense bipartisan legislation represents an important step toward increasing accountability for health insurers and creating sensible guidelines for the prompt payment of provider claims. The law has long required prompt payment in traditional Medicare, and this overdue legislation ensures Medicare Advantage plans have to play by the rules. FAH is grateful to Senators Catherine Cortez Masto (D-NV) and Marsha Blackburn (R-TN) and Representatives Jodey Arrington (R-TX) and Linda Sánchez (D-CA) for introducing the Medicare Advantage (MA) Prompt Pay Act and protecting seniors’ access to 24/7 care.”
For more information about the proposed bill’s text visit: Click here for bill text.
