No Surprises Act shielded patients from big medical bills. Now its arbitration system may be raising costs.

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   No Surprises Act Arbitration System Driving Up Healthcare Costs

   While the No Surprises Act successfully shields patients from unexpected medical bills, its arbitration system is driving up health costs by awarding providers rates well above market averages. Healthcare providers and middlemen are exploiting a loophole in the 2020 legislation. This dynamic shifts financial burdens onto employers and worker insurance premiums, pushing costs higher across the healthcare system. Lawmakers are now moving to overhaul the dispute process to address these rising expenses.

   Why it matters

   The 2020 law aimed to stop shock charges for patients receiving out-of-network emergency care or treatment at in-network facilities. However, the subsequent arbitration process established to resolve payment disputes between insurers and providers has generated unintended economic consequences. Federal lawmakers have stepped in to address the growing financial pressure on employer-sponsored health plans.

   What is confirmed

   • The No Surprises Act shielded patients from big medical bills.
   • Healthcare providers and middlemen are exploiting a loophole in a 2020 law designed to shield consumers from surprise medical bills.
   • The arbitration system awards providers far above market rates, pushing costs onto employers and premiums.
   • Rep. Frank Pallone Jr. introduced a bill on Thursday to drop the surprise billing law's arbitration process.

   What to watch next

   • Legislative action on Rep. Frank Pallone Jr.'s proposed bill to eliminate the arbitration process.
   • Potential changes to how insurers and providers resolve payment disputes under federal health laws.
   Sources used for this update (8)

   1. CBS News — No Surprises Act shielded patients from big medical bills. Now its arbitration system may be raising costs.
   2. Modern Healthcare — How No Surprises Act disputes shift costs to workers
   3. The Conference Board — Policy Backgrounder: Health Care Costs and the No Surprises Act
   4. RamaOnHealthcare — The No Surprises Act Is Driving Inflation
   5. Yahoo — Congress tried to fix issues with surprise medical costs. It created another problem.
   6. www.cbsnews.com — No Surprises Act shielded patients from big medical bills ...
   7. capitaldigest.com — No Surprises Act Arbitration Driving Up Health Costs
   8. rollcall.com — Pallone bill would drop surprise billing law’s arbitration ...
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