Legal professional Basic of New York Letitia James speaks onstage throughout the thirty ninth Annual Brooklyn Tribute to Dr. Martin Luther King, Jr. at BAM Peter Jay Sharp Constructing on Jan. 20, 2025 in New York Metropolis.
Photograph by Roy Rochlin/Getty Pictures for (BAM) Brooklyn Academy of Music
New York Legal professional Basic Letitia James says that her workplace has secured over $6.9 million in refunds and $7 million in canceled debt from CityMD, a preferred pressing care supplier with over 140 areas in New York, for sufferers who have been wrongfully billed for COVID-19 testing on the top of the pandemic.
An Workplace of the Legal professional Basic (OAG) investigation revealed that CityMD improperly billed its sufferers for COVID-19 exams, typically issuing payments as much as two years after providers have been supplied and even threatening to escalate overdue payments to debt assortment.
James mentioned CityMD issued these payments regardless of information of state and federal legal guidelines that protected sufferers from being billed for COVID-19 testing throughout the pandemic.
Because of OAG’s enforcement, CityMD has canceled greater than $7 million in excellent COVID-19 testing payments for over 87,000 sufferers and refunded practically $7 million to over 215,000 sufferers who already paid.
“New Yorkers ought to by no means have to fret about sudden medical payments, particularly throughout a public well being disaster,” mentioned Legal professional Basic James. “CityMD’s actions added pointless stress and monetary burdens to sufferers looking for important COVID-19 testing on the top of the pandemic.
“I am proud to have secured hundreds of thousands of {dollars} in refunds for impacted people, and I encourage anybody who believes they’ve been a sufferer of fraudulent medical billing practices to file a grievance with my workplace,” she added.
James mentioned the OAG opened an investigation in October 2022 after receiving quite a few complaints about CityMD charging sufferers for COVID-19 exams.
She mentioned that the investigation revealed that between March 2020 and November 2022, CityMD billed and picked up cost from 1000’s of New Yorkers for COVID-19 testing providers, with many payments being issued practically two years after the service date.
James mentioned the OAG additionally discovered that CityMD continued this observe regardless of realizing that New York and federal legislation prohibited well being plans from charging co-pays and deductibles for medically obligatory COVID-19 testing and associated providers or visits throughout the public well being emergency.
Primarily based on CityMD’s web site and assurances by workers when exams have been carried out, the legal professional common mentioned sufferers understood they might not face out-of-pocket prices for COVID-19 testing providers.
She mentioned CityMD didn’t embrace a clearly posted money value for COVID-19 testing providers on its web site.
James mentioned many sufferers who tried to report considerations or complaints relating to testing payments to CityMD discovered it tough to contact the corporate.
When these sufferers have been capable of attain CityMD, she mentioned the corporate typically refused to amend beforehand issued COVID-19 testing payments.
Because of the OAG investigation, the New York Legal professional Basic mentioned CityMD had issued $6,910,986 in refunds to 215,819 sufferers and recalled $7,026,668 in excellent medical payments for 87,334 sufferers.
She mentioned CityMD mailed and emailed all impacted sufferers a letter notifying them of the refunds and debt cancellations and posted notices on its web site and social media.
Shifting ahead, James mentioned CityMD should guarantee its COVID-19 check billing practices adjust to the legislation, present clear pricing for COVID-19 testing providers on its web site, and proceed cooperating with OAG to handle any COVID-19 testing-related client complaints.
She mentioned CityMD can pay the State of New York $95,000 in penalties and has agreed to pay a further $5,000 per violation for any future violations or failure to implement the required programmatic updates.
James mentioned if a affected person believes they’ve been a sufferer of deceptive billing practices, they need to contact the OAG Well being Care Bureau on-line or name 1-800-428-9071.
