Wednesday, October 3, 2018

What Surprise Medical Bill Legislation Could Mean for Insurers

By Leslie Small 

In mid-September, a bipartisan group of senators led by Sen. Bill Cassidy (R-La.) unveiled draft legislation that aims to shield consumers from getting hit with unexpected medical bills. However, experts say there are parts of the draft bill that might need to be refined to ensure that the solution to surprise billing doesn’t have unintended consequences.
According to a survey released Aug. 30 by NORC at the University of Chicago, 57% of American adults say they’ve received a bill for medical services they thought would have been covered by insurance. Respondents indicated that 20% of their surprise bills resulted from receiving care from a doctor not in their insurance network.
During the 2018 legislative session, six states passed new laws designed to protect consumers from surprise bills, according to the National Academy for State Health Policy (NASHP). The laws, which vary in design and comprehensiveness, build on actions taken by those states and others to address the problem in previous years.
Cassidy’s draft bill would fill the regulatory gap left by that patchwork of state laws and the fact that the federal government, not states, regulates self-funded insurance plans offered by large employers.
Here’s how the law would work: If patients receive either emergency or non-emergency services from an out-of-network provider at an in-network facility, they cannot be billed any more than the amount of their in-network cost-sharing. Instead, a patient’s health plan would be responsible for shouldering the remaining balance, paying whichever is greater: the median in-network contracted rate for the service in a specified geographic area, or 125% of the average amount for the service allowed by all health plans in a specified geographic area.
Further, for patients who receive emergency services from an out-of-network provider and then require additional services after being stabilized, the facility must alert such patients that they could face a high cost-sharing amount and give them the option of transferring to an in-network facility.
Subscribers may read the in-depth article online. Learn more about subscribing to AIS Health's publications

No comments:

Post a Comment