Please Contact Your Member of Congress to Co-Sponsor the PAID Act

TO: All NAMIC Members

DEADLINE:Close of business, Nov. 22

ACTION NEEDED: Please Contact Your Member of Congress to Co-Sponsor the PAID Act

Congress has long recognized Medicare’s secondary responsibility to pay health care expenses when a beneficiary is injured and another entity is required to pay the claim – for example when an automobile insurance policy exists.

Unfortunately, the process by which the government recaptures payment for claims from Medicare Advantage Plans or Medicare prescription drug plans is broken. Unlike other parts of Medicare, the law does not adequately allow for all the stakeholders to share important information for MA and Medicare prescription drug plans.

Because of this companies have no way to find out whether a beneficiary is enrolled in a MA or prescription drug plan and cannot coordinate benefits or repay what may be owed. This breakdown exposes companies to aggressive litigation to recover heavy, double damage penalties. 

Congress can help beneficiaries and companies resolve claims and promote better coordination of benefits by requiring the federal government to share information with settling parties

To do this, Congress should enact the Provide Accurate Information Directly, or PAID Act, H.R. 1375, S. 1989. Passage of the PAID Act would require the current and previous three years of a beneficiary’s enrollment status to be disclosed upon request. This simple change would drastically reduce the exposure of insurance companies to litigation as well as penalties associated with recovery liens.

Please click here to send a letter to your member of Congress with the request to co-sponsor the bill and pass this important piece legislation into law.

Article Posted: 11.14.19
Last Updated: 01.07.20


Jon Bergner
Assistant Vice President – Public Policy and Federal Affairs