CFPB and CMS Take Joint Action Against Illegal Billing of Low-Income Medicare Recipients
The Consumer Financial Protection Bureau (CFPB) and the Centers for Medicare & Medicaid Services (CMS) announced a joint action that will protect low-income Medicare beneficiaries from improper billing practices. As a result, the QMB group of about one in eight Medicare beneficiaries nationwide will no longer be subjected to unlawful charges, such as co-pays and deductibles, prohibited by federal law.
CFPB Director Rohit Chopra said this improper billing can have such a financial cost on low-income families, and this is why the CFPB and CMS are really committed to preventing illegal debt collection for these beneficiaries. CMS Administrator Chiquita Brooks-LaSure also emphasized their commitment to affordable healthcare, making sure that no American experiences financial ruin over essential medical services.
The agencies made clear that Medicare providers, including those in Medicare Advantage plans, cannot legally charge QMB enrollees for cost-sharing amounts. Violators may face CMS sanctions and potential legal liability. This guidance accompanies CMS’s issuance of new resources to assist healthcare providers with accurate verification of QMB status and timely refunds of improper charges, particularly where misinformation comes from Medicare Advantage plan administrators.
Improper billing practices normally are against QMB, and hence, it fosters a tendency to move into debt collection actions as well as affecting their credit reports. According to the CFPB, there was a report of QMB status among 17 percent of Medicare-related complaints, including 11 percent who actually claimed attempts to collect by either providers or debt collectors. Reports of debts can have some effects on low-income recipients’ access to shelter, among other services.
CMS recommends that QMB recipients whose bills are illegally charged contact Medicare to obtain assistance. Consumers can also report related debt collection issues on the CFPB website or by hotline.
For more information, visit CFPB’s website or call (855) 411-CFPB.