New York Attorney General Letitia James has announced a resolution involving CityMD, an urgent care provider with over 140 locations in New York. The settlement secures more than $6.9 million in refunds and $7 million in canceled debt for patients who were incorrectly billed for COVID-19 testing during the pandemic.
An investigation by the Office of the Attorney General (OAG) found that CityMD improperly charged patients for COVID-19 tests, sometimes sending bills up to two years after services were provided. Some overdue bills were even threatened with escalation to debt collection. This occurred despite state and federal laws that protected patients from such charges during the pandemic.
Attorney General James stated, “New Yorkers should never have to worry about unexpected medical bills, especially during a public health crisis.” She added that CityMD's actions created unnecessary stress and financial burdens on patients seeking essential testing.
The OAG began its investigation in October 2022 following numerous complaints about billing practices at CityMD. The probe revealed that between March 2020 and November 2022, thousands of New Yorkers were billed and made payments for COVID-19 testing services despite legal protections against such charges.
CityMD’s website and staff had assured patients there would be no out-of-pocket costs for COVID-19 testing services. However, many patients faced difficulties when trying to report concerns or amend their bills with CityMD.
As a result of the investigation, CityMD has refunded $6,910,986 to 215,819 patients and canceled $7,026,668 in outstanding medical bills for 87,334 patients. Impacted individuals received notifications via mail and email regarding refunds and debt cancellations. Notices were also posted on CityMD's website and social media platforms.
Going forward, CityMD is required to ensure compliance with legal billing practices for COVID-19 tests and provide transparent pricing information online. The company will pay $95,000 in penalties to New York State and face additional fines for future violations or failures to implement necessary updates.
Patients suspecting they have been victims of misleading billing can contact the OAG Health Care Bureau online or by phone at 1-800-428-9071.
Assistant Attorney General Eve Woodin managed this case under Deputy Bureau Chief Leslieann Cachola’s supervision alongside Bureau Chief Darsana Srinivasan within the Division for Social Justice led by Chief Deputy Attorney General Meghan Faux.