Press Releases

WASHINGTON, D.C. – Last week, House Budget Chairman Jodey Arrington (TX-19) introduced the Medicare Advantage Prompt Pay Act, bipartisan, bicameral legislation to improve Medicare Advantage’s (MA) billing practices, offer certainty for health care providers who contract with MA plans, and ensure that seniors aren’t stuck with unfair, confusing, or delayed bills after receiving critical care.

Companion legislation in the U.S. Senate is led by U.S. Senators Catherine Cortez Masto (D-Nev.) and Marsha Blackburn (R-Tenn.), with support from Congresswoman Linda Sánchez (D-Calif.-38). 

“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,” said House Budget Chairman Jodey Arrington (TX-19). “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.” 

“More than half of seniors eligible for Medicare are enrolled in Medicare Advantage,” said Congresswoman Linda T. Sánchez (CA-38). “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.”   

“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.” 

“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,” said Senator Cortez Masto. “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.” 

“This bill would finally require Medicare Advantage plans to pay hospitals in a timely manner for medically necessary care provided to patients,” said Lisa Kidder Hrobsky, Senior Vice President of Federal Relations, Advocacy and Political Affairs for the American Hospital Association. “These new prompt payment standards would alleviate some of the financial and administrative burden currently facing hospitals and health systems, which will allow them to continue providing critical care to our nation’s seniors. The AHA greatly appreciates Reps. Arrington and Sanchez and Sens. Blackburn and Cortez Masto for their leadership on this important issue.” 

“The Medicare Advantage Prompt Pay Act will bring overdue accountability, transparency, and prompt pay standards to the Medicare Advantage program,” said John Hawkins, President and CEO of Texas Hospital Association. “Slow pay tactics and excessive denials restrict access to medically necessary care for seniors. For years, Texas hospitals have elevated these issues and called for congressional oversight. THA is grateful for the bi-partisan bi-cameral leadership of Reps. Jodey Arrington and Linda Sanchez and Sens. Marsha Blackburn and Catherine Cortez Mastro to ensure fair and timely payment standards for clean claims.”  

“The National Rural Health Association (NRHA) applauds the work of Representatives Arrington and Sanchez to address the challenges that rural providers face in the Medicare Advantage (MA) program,” said Alan Morgan, CEO, National Rural Health Association. “Rural providers operating on thin margins face administrative hurdles to receiving timely payments from MA plans, often creating cash flow issues. This legislation will ensure that rural providers receive prompt payments, which will improve the predictability and sustainability of providing care to beneficiaries. We proudly support this legislation and look forward to working with Representatives Arrington and Sanchez to pass this bill.”  

“Too often, arbitrary delays and denials threaten seniors' access to care and further strain hospital finances,” said Charlene MacDonald, Executive Vice President, Public Affairs, Federation of American Hospitals. “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 Linda Sanchez (D-CA) and Jodey Arrington (R-TX) for introducing the Prompt Pay Act and protecting seniors' access to 24/7 care.” 

“Essential hospitals face unprecedented financial disruptions that challenge their ability to provide high-quality care to their patients and communities,” said Bruce Siegel, MD, MPH, President and CEO of America´s Essential Hospitals. “This makes the prompt payment of Medicare Advantage (MA) reimbursements especially critical. America’s Essential Hospital fully supports the Medicare Advantage Prompt Pay Act, and we thank Reps. Jodey Arrington (R-TX) and Linda Sanchez (D-CA) and Senators Catherine Cortez Masto (D-NV) and Marsha Blackburn (R-TN) for their efforts to hold MA organizations accountable for reimbursing hospitals in a timely manner. We will continue to support common sense legislation like this that aims to better sustain and support our hospitals, and the communities they serve.”

“Health care providers already face a number of challenges that are leading to increased physician burnout,” said Michele Stockwell, President of Bipartisan Policy Center Action (BPC Action). “Administrative burden should not be one of them. The Medicare Advantage Prompt Pay Act would apply prompt pay rules to in-network Medicare Advantage providers, aligning it with requirements already in place for MA out-of-network coverage, fee-for-service plans, and Medicare Part D Plans. BPC Action applauds Reps. Jodey Arrington (R-TX) and Linda Sánchez (D-CA) and Sens. Marsha Blackburn (R-TN) and Catherine Cortez Masto (D-NV) for leading this bill, which is a pragmatic solution to ensure providers receive prompt and sustainable payment without delay.” 

“Physicians are faced with increasingly outlandish administrative burdens to get their patients the care they need, and then inadequate and delayed payment for that care,” said ASA President Donald E. Arnold, MD, FACHE, FASA. “ASA is supportive of the Medicare Advantage Prompt Pay Act that will curtail anti-patient gamesmanship within the Medicare Advantage program and ensure that Medicare Advantage plans promptly and fairly pay physicians for the necessary care they provide.” 

“Hospitals and providers across the country have seen a significant increase in payment delays and denials from Medicare Advantage plans which has led to a decrease in access for beneficiaries,” said Erik Wexler, President and CEO of Providence. “Medicare Advantage was designed to be a more efficient version of traditional Medicare, yet Medicare Advantage delays and denies claims 5 times more than Medicare fee-for-service. We are grateful for Congressman Arrington's leadership to address these payment loopholes which will reduce overall healthcare administrative costs, ensure providers are paid for the high-quality services provided and ease patient's financial healthcare journey.” 

“Timely, reliable reimbursement is vital to ensuring hospitals can continue to deliver care in their communities,” said Shoshana Krilow, Senior Vice President of Public Policy and Government Relations for Vizient. “Hospitals throughout the country are operating on extremely tight margins with limited reserves, and establishing prompt payment standards for Medicare Advantage is urgently needed. Vizient applauds Representatives Arrington and Sanchez and Senators Cortez Masto and Blackburn for their leadership in introducing this important legislation, which will strengthen provider stability and patient access to care.” 

“Medicare Advantage plans have been hard on rural Texas hospitals, so TORCH applauds the effort to require payments without delay.”  — John Henderson, President/CEO, Texas Organization of Rural & Community Hospitals    

“The Medicare Prompt Payment Act is a vital step forward for rural and small health care providers who stretch every dollar to serve their communities,” said Jennifer Stoll, Chief External Affairs Officer, OCHIN Inc. “By shortening the time spent in accounts receivable, this legislation helps ensure these providers can keep their doors open and continue delivering essential care. OCHIN is deeply grateful to Chairman Arrington, Representatives Sánchez, and Representative Cortez Masto and Senator Marsha Blackburn for championing this important bill and standing up for the sustainability of rural health care.”

This legislation is endorsed by the Federation of American Hospitals (FAH), American Hospital Association (AHA), America’s Essential Hospitals (AEH), National Rural Health Association (NRHA), American Academy of Family Physicians (AAFP), American Society of Anesthesiologists, American Psychiatric Association (APA), Bipartisan Policy Center Action (BPC Action), Nevada Hospital Association, Texas Hospital Association, Texas Organization of Rural & Community Hospitals (TORCH), California Hospital Association, Vizient, OCHIN, Providence, and UMC Health System. 

The bill text can be found here. 

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