State Surprise Billing Laws Impact Out-of-Network Provider Charges
Provider charges for out-of-network care increased by $1,157 after the passage of state surprise billing laws that allow arbitrators to consider provider charges in a surprise billing dispute. State surprise billing laws that allow arbitrators to consider provider charges when determining out-of-network payment amounts for surprise medical bills led to an increase in billed charges for out-of-network care, according to a Health Affairs study . Prior to the federal No Surprises Act , many states passed laws protecting patients from surprise billing. They also established a process to determine the out-of-network rate when surprise billing occurred . Under state surprise billing laws, payment rates are usually determined by a payment standard or an independent dispute resolution (IDR) process . Some state laws allow arbitrators to use IDR processes that consider provider charges. The No Surprises Act, which went into effect on January 1, 2022, prohibit...