Congress tried to stop surprise medical bills. It created another problem.
Summary
A law meant to stop surprise medical bills has stopped unexpected charges but caused new problems. It created an arbitration system where doctors and middlemen get payments much higher than normal rates, which can increase healthcare costs for workers and families.Key Facts
- The No Surprises Act started in 2022 to end surprise medical bills from out-of-network providers.
- It set up a "baseball-style" arbitration system to settle payment disputes between insurers and doctors.
- Arbitrators must choose one party’s payment offer without negotiation.
- Doctors often win awards many times higher than standard benchmark rates for medical services.
- Some doctors have received payments hundreds of times above typical rates for routine or complex procedures.
- Insurers pay these high amounts mostly from employer-sponsored health plans, possibly raising premiums or reducing benefits for workers.
- More than 85% of arbitration decisions favor providers.
- The system pushes hidden costs into health plans rather than eliminating extra charges.
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