RAMP Act

The RAMP Act (HR4056), introduced June 20, 2025, by Rep. Bilirakis (R-FL) with one cosponsor, proposes amending Section 1862(b)(3)(A) of the Social Security Act to limit private causes of action under the Medicare Secondary Payer (MSP) rules exclusively to group health plans. Currently, the private right of action allows Medicare to sue non-group primary plans (auto, liability, workers' comp, no-fault) for failing to pay as primary payer. The bill would remove that threat for non-group plans, effectively lowering litigation risk for auto insurers, workers' compensation carriers, and liability carriers. There is no authorized or appropriated funding in this bill—it is a legal liability cap, not a spending measure. The money trail is avoidance of legal defense costs, settlements, and judgments for non-group health plans. Companies like Allstate ($ALL), Progressive ($PGR), Berkshire Hathaway (GEICO, $BRK.B), and Travelers ($TRV) would see reduced MSP-related litigation expenses, though the dollar impact is likely modest relative to their total claim reserves. The three insurers cited in the Congressional event details—UnitedHealth, Cigna, Humana—are primarily group health plan operators. Since the bill preserves the private right of action for group health plans, they continue to face MSP liability for their Medicare Advantage and employer plan lines. The benefit to these companies is indirect at best, stemming from a general reduction in industry legal friction. The real beneficiaries are non-group health insurers not listed in the provided data. Real market data shows $UNH at $366.27, up 35.36% over 30 days; at $287.63, up 7.83% over 30 days; at $241.41, up 39.23% over 30 days. These recent price surges are likely driven by factors other than the RAMP Act (e.g., broader healthcare policy or earnings), given the bill is in early committee stage with no scheduled markups. Timeline: The bill was referred to House Ways & Means and Energy & Commerce committees on June 20, 2025. No further action recorded through April 30, 2026. Companion bill S3816 was also introduced and referred to Senate Finance. For this 119th Congress, passage probability is low without a markup or sponsor expansion. If it advances, committee hearings and a vote on the House floor would be required, followed by Senate consideration.