President Obama signs Rep. Murphy’s SMART health care act into law
U.S. Rep. Tim Murphy, R-18th District, welcomed the passing of his Strengthening Medicare and Repaying Taxpayers act into law Friday by President Barack Obama.
The legislation eliminates rigid hurdles to the Medicare Secondary Payer program and recoups billions of dollars owed to taxpayers.
“Four years ago, one of my constituents suffered severe injuries in a terrible car accident,” said Murphy in a press release. “After coming to a settlement with the insurer, 73-year-old Lorraine Babich of Washington County was unable to get a straight answer from the Centers for Medicare and Medicaid Services about the amount of her medical bills, which had to be repaid to the Medicare Trust Fund. As a result of unnecessary bureaucratic hurdles, Lorraine waited years to get the proper settlement due to her. Unfortunately, Lorraine’s heartbreaking story isn’t an isolated case because there are thousands of senior citizens just like her who continue to await settlements, see their Social Security checks garnished, and Medicare coverage denied through no fault of their own. With the SMART Act now signed into law, Lorraine and thousands of other senior citizens will no longer needlessly suffer due to bureaucratic red tape.”
Under the Medicare Secondary Payer program, insurers, retailers, and third parties must repay Medicare if any negligence leads to higher costs for a senior citizen. However, the current system is complicated, preventing these cases from closing and tying up money owed to the Medicare Trust Fund.
The SMART Act requires Medicare to provide accurate information about the total cost of medical bills to insurers and third parties before a settlement. Without coming to a settlement, Medicare cannot recoup the money, sticking beneficiaries with the bill. The SMART Act helps Medicare and private insurers close out medical billing cases in a timely manner.
Experts estimate Murphy’s bill could collect between $1 billion and $4 billion annually, while saving the Medicare agency countless hours of staff work pursuing claims of little or no value.