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 weaknesses in the Medicare Secondary Payer (MSP) system.
Senator Scott said, “Protecting Medicare is about keeping our promise to America’s seniors. 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 an update to the MSP statute by removing the “Private Cause of Action” provision established in 1986. This provision currently allows individuals who claim damages to sue their private insurance company if it fails to pay claims covered by Medicare. Under existing law, when courts require insurers to pay these claims, Medicare does not get reimbursed for previous payments; instead, those funds go directly to whoever brought the lawsuit. This situation can lead taxpayer money away from being returned to the Medicare Trust Fund.
With changes over time requiring all settlements and awards be reported directly to federal authorities, Medicare now has more oversight of payments. Despite this increased transparency, the Private Cause of Action provision remains active and enables continued lawsuits under current policy. Lawmakers argue this disrupts beneficiaries’ ability to resolve cases efficiently while keeping Medicare as the main payer.
By closing this gap in policy with the RAMP Act, legislators aim for timely settlements so that private insurers repay Medicare when appropriate. The measure builds on Senator Scott’s previous Provide Accurate Information Directly (PAID) Act—now law—to reinforce accountability and protect taxpayer resources.
Senator Scott is also known for his involvement in Senate committees such as Banking, Housing and Urban Affairs; Finance; Health; Education; Labor and Pensions; and Small Business and Entrepreneurship (official website). He has worked on initiatives like Opportunity Zones legislation enacted in 2017 designed to encourage investment in economically distressed areas (official website). In addition, he emphasizes workforce development and economic opportunity for South Carolina residents (official website).
The full text of the bill is available online.
