CMS Refunds Withheld Funds Designated for the Fire Department of the City of New York
Statement from CMS Administrator Seema Verma:
“New York City’s failure to resolve its outstanding debts owed to the federal taxpayers resulted in $3.3 million in World Trade Center Health Program funds being offset to resolve a debt to taxpayers. We owe an even greater debt to our 9/11 heroes, and our team has worked together with the U.S. Department of Treasury to protect the critical federal funding designated for the World Trade Center Health Program. We returned the $3.3 million to FDNY and we will work to continue to hold New York City accountable for its outstanding Medicare debt.”
Background on FDNY Refund:
The Centers for Medicare & Medicaid Services (CMS) has refunded withheld funds designated for the Fire Department of the City of New York (FDNY). Payments totaling $3,363,931.72 were issued to FDNY on October 28, 2020. The refunded amounts were collected to pay delinquent Medicare Secondary Payer (MSP) debts owed by New York City.
While CMS has issued a refund, this refund does not absolve New York City of responsibility for its underlying delinquent debts. The Centers for Disease Control and Prevention (CDC) National Institute for Occupational Safety and Health has exempted payments related to the World Trade Center Health Program from being withheld to satisfy federal debts. Treasury and CMS are working to identify other sources of funding to offset New York City’s delinquent MSP debts. However, repayment will not occur by withholding any of the funds designated for the World Trade Center Health Program.
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