U.S. Senators Tim Scott (R-SC) and Maggie Hassan (D-NH) have introduced the Repair Abuses of MSP Payments (RAMP) Act, a bipartisan bill aimed at addressing loopholes in the Medicare Secondary Payer (MSP) system.
“Protecting Medicare is about keeping our promise to America’s seniors,” said Sen. Scott. “This bipartisan bill closes a loophole that has allowed Medicare dollars to slip through the cracks, strengthens accountability, and ensures both seniors and taxpayers are protected.”
Senator Hassan added, “As health insurance costs continue to soar for most Americans, this bipartisan legislation will close a loophole in our laws that let debt collectors further increase health care costs for Americans. I’ll continue to work with my colleagues across the aisle to tackle waste, fraud, and abuse, lower costs, and safeguard Medicare for generations to come.”
The RAMP Act proposes changes to the MSP statute by removing the “Private Cause of Action” provision established in 1986. This provision currently allows individuals who have experienced damages to sue private insurers if those companies fail to pay claims covered by Medicare. Under existing law, when courts require an insurer to pay these claims, funds already paid by Medicare are not reimbursed back into the program; instead, they go directly to whoever filed the lawsuit. This situation can result in taxpayer money not being returned to the Medicare Trust Fund.
Modern reporting requirements now mandate that all settlements, judgments, and awards be reported directly to federal authorities. These updates give Medicare more oversight over payments and reduce reliance on private lawsuits for fund recovery. However, since the Private Cause of Action remains part of current law, lawsuits continue under this provision—potentially complicating case settlements and maintaining Medicare as the primary payer.
By eliminating this legal loophole with the RAMP Act, lawmakers aim for more efficient claim settlements so that Medicare is properly reimbursed when private insurers are responsible for payment. The legislation builds on Senator Scott’s previous efforts with his Provide Accurate Information Directly (PAID) Act—which became law—to enhance accountability and protect taxpayer resources.
Senator Scott also provides constituent services such as help with federal agencies and community resources for South Carolina residents through his official website. He has played a role in enacting Opportunity Zones legislation designed to encourage investment in economically distressed communities (source). Additionally, he serves on several Senate committees including Banking, Housing and Urban Affairs; Finance; Health; Education; Labor and Pensions; Small Business and Entrepreneurship (source). Workforce development and economic opportunity remain priorities for Senator Scott (source).
