Attorney General James Secures $6.9 Million in Refunds from CityMD for Wrongful COVID-19 Testing Charges

CityMD Refunds 215,000 Patients, Cancels Bills for 87,000, and Pays $95,000 in Penalties

Attorney General Letitia James announced that her office has secured over $6.9 million in refunds and $7 million in canceled debt from CityMD, a major urgent care provider in New York. The settlement comes after an investigation revealed that CityMD wrongfully billed patients for COVID-19 testing during the pandemic, sometimes issuing bills up to two years after services were provided and even threatening debt collection.

As a result of the Attorney General’s enforcement action, CityMD has canceled over $7 million in outstanding COVID-19 testing bills for 87,000 patients and refunded nearly $7 million to 215,000 individuals who had already paid.

“New Yorkers should never have to worry about unexpected medical bills, especially during a public health crisis,” said Attorney General James. “CityMD’s actions added unnecessary stress and financial burdens to patients seeking essential COVID-19 testing. I am proud to have secured millions of dollars in refunds, and I encourage anyone who believes they have been wrongfully charged to file a complaint with my office.”

The Office of the Attorney General (OAG) launched its investigation in October 2022 after receiving numerous complaints about CityMD’s billing practices. Between March 2020 and November 2022, CityMD improperly billed thousands of New Yorkers for COVID-19 testing, despite clear state and federal protections prohibiting such charges.

Patients believed they would not face out-of-pocket costs, based on CityMD’s website and staff assurances. However, the company did not clearly post cash prices for COVID-19 testing, and many who attempted to dispute charges found it difficult to reach customer service. Those who did make contact were often denied corrections to their bills.

Following the OAG’s investigation, CityMD has: Issued $6,910,986 in refunds to 215,819 patients. Canceled $7,026,668 in outstanding bills for 87,334 patients. Notified affected patients via mail, email, and online announcements. Agreed to comply with transparent COVID-19 test pricing requirements. Paid $95,000 in penalties to the State of New York, with an additional $5,000 fine per future violation.

Patients who believe they were wrongfully charged for medical services can contact the OAG Health Care Bureau online or call 1-800-428-9071.

This case was handled by Assistant Attorney General Eve Woodin of the Health Care Bureau, under the supervision of Deputy Bureau Chief Leslieann Cachola and Bureau Chief Darsana Srinivasan. The Health Care Bureau operates within the Division for Social Justice, led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.