Wednesday, July 3, 2019

Lawmakers Make Efforts to End Surprise Medical Bills, Ultimate Impact Remains Unknown

by Jane Anderson
The Senate Health, Education, Labor and Pensions (HELP) Committee on June 26 advanced wide-ranging bipartisan legislation aimed at lowering health care costs by protecting patients against surprise medical bills and targeting drug prices by clamping down on PBMs.
"This [Senate] bill seems to have strong momentum and will keep moving before the election," says Caroline Pearson, a senior fellow at NORC at the University of Chicago. Still, "it's impossible to know whether it will actually pass," Pearson tells AIS Health.
"The debate over surprise bills continues to be complicated, as health plans and providers do not agree on what the payment should be for out-of-network charges," Pearson explains. "As the bill has progressed, providers and payers remain split on appropriate reimbursement."
Generally speaking, providers favor an arbitration model to resolve the payment question, Pearson says, noting, "providers are concerned that any other fixed payment amount constitutes rate-setting." Meanwhile, "for health plans, individual arbitration with many different providers has the potential to be very burdensome. These payers would prefer a fixed reimbursement benchmark."
Overall, America's Health Insurance Plans President and CEO Matt Eyles said in a statement that the bill would hinder competitive negotiations by stripping insurers and PBMs of leverage to lower costs "without addressing the root cause: high drug prices set and controlled by manufacturers who enjoy government-granted monopolies through the patent system."
It's too soon to tell how the bill’s provisions might affect consumers, Pearson says. "Efforts to increase transparency about which providers are in-network are helpful for consumers, but only if that information is easy to use," she says. "The real consumer impact will depend on the final details of the bill and how it is implemented through regulation."
From Health Plan Weekly

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