NEW YORK (1010 WINS) -- CityMD is refunding more than 215,000 New Yorkers a total of nearly $7 million, canceling outstanding bills for another 87,000-plus people, and paying $95,000 in penalties to New York State, pegged to wrongful billing for COVID-19 testing during the pandemic, Attorney General Letitia James announced Tuesday.
"An Office of the Attorney General (OAG) investigation revealed that CityMD improperly billed its patients for COVID-19 tests, in some cases issuing bills up to two years after services were provided and even threatening to escalate overdue bills to debt collection," James' office said of CityMD -- which has more than 140 locations in New York -- in a statement.
"CityMD issued these bills despite knowledge of state and federal laws that protected patients from being billed for COVID-19 testing during the pandemic," James' office continued. "As a result of OAG’s enforcement, CityMD has canceled more than $7 million in outstanding COVID-19 testing bills for over 87,000 patients and refunded nearly $7 million to over 215,000 patients who already paid."
James said, "New Yorkers should never have to worry about unexpected medical bills, especially during a public health crisis. CityMD’s actions added unnecessary stress and financial burdens to patients seeking essential COVID-19 testing at the height of the pandemic."
The investigation into CityMD kicked off in October 2022, following "numerous complaints" about the healthcare provider charging for COVID-19 tests.
"The investigation revealed that between March 2020 and November 2022, CityMD billed and collected payment from thousands of New Yorkers for COVID-19 testing services, with many bills being issued nearly two years after the date of service," James' office said. "The OAG also found that CityMD continued this practice despite knowing that New York and federal law prohibited health plans from charging co-pays and deductibles for medically necessary COVID-19 testing and related services or visits during the public health emergency."
CityMD has not yet responded to 1010 WINS' request for comment.