New York’s Attorney General Letitia James has announced that popular urgent care provider CityMD will refund over $6.9 million to patients who were wrongfully charged for COVID-19 tests during the pandemic. An investigation by the Office of the Attorney General (OAG) uncovered illegal billing practices, including charges issued up to two years after service and threats of debt collection.
CityMD, with over 140 locations in New York, billed thousands of patients for COVID-19 testing services despite state and federal laws prohibiting such charges during the public health emergency. The OAG found that many patients were misled into believing their tests would be covered, only to face unexpected bills later.
The AG’s office revealed that CityMD has canceled over $7 million in outstanding bills for 87,334 patients and refunded nearly $7 million to 215,819 patients. In addition, the company will pay $95,000 in penalties to the State of New York. Moving forward, CityMD is required to comply with legal billing practices and ensure transparent pricing for COVID-19 testing services.
Attorney General James emphasized the importance of protecting consumers during health crises, stating, ‘New Yorkers should never have to worry about unexpected medical bills, especially during a public health crisis.’ Patients who believe they were victims of fraudulent medical billing can file complaints with the OAG’s Health Care Bureau online or by calling 1-800-428-9071.
The investigation was conducted by the OAG and led to significant financial relief for affected individuals. CityMD has agreed to take steps to prevent such incidents in the future, including improving communication and transparency with patients regarding billing practices.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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