Introduction
The No Surprises Act, enacted by Congress at the end of 2020, gives considerable safeguards to most US citizens with private insurance on health coverage. For example, due to the surging menace of patients incurring surprise medical expenses unintentionally obtained from out-of-network hospitals, physicians, and others, there was a need to provide laws to this issue. Therefore, the Surprise medical bill was ratified; as a result, it had significant effects on hospital stakeholders. Hence, this assessment will review such repercussions on the affected stakeholders.
The No Surprise Act
The No Surprises Act (NSA) implemented in 2022 safeguards against unexpected health costs. Consequently, Pollitz (2021) states that the legislation protects customers with the majority of kinds of private health coverage from some unanticipated medical expenses. It was enacted into law in 2020; however, most of its safeguards took action in January 2022. This new legislation tackles three instances of unexpected medical bills. First, when an enrollee obtains urgent treatment from an out-of-network practitioner or institution (No Surprises Act, 2022). Second, when a participant utilizes rescue helicopter crisis delivery operations (No Surprises Act, 2022). Finally, when an enrollee obtains non-emergency care at an in-network institution but is handled by an out-of-network physician without explicitly choosing that practitioner or providing an agreement to be charged (No Surprises Act, 2022). In these instances, the legislation ensures that customers’ out-of-pocket expenses are confined to in-network cost-sharing and prohibits clinics from issuing patients’ balance invoices for additional sums.
Contrasting Impacts of the No Surprises Act on Stakeholders
Insurance Companies
Potential surprise bills were prevented following the implementation of the Act. As such, when an out-of-network physician services a client with private health insurance for urgent services or at an in-network institution, the legislation prohibits the medical practitioner or hospital from charging the individual more than their in-network cost-sharing amount (AHIP & Blue Cross Blue Shield Association, 2022). The statute sets a procedure for resolving disputes over the amount medical insurance would pay an out-of-network physician or facility, with independent dispute resolution as the last step (IDR).
Healthcare Providers
The No Surprise billing legislation prohibits providers from invoicing unexpectedly. The out-of-network provider must bill the client the in-network rate of the health plan. Under the new legislation, out-of-network providers must give formal notification of the expenses within 72 hours after service delivery receive the patient’s agreement (What Does the No Surprises Act Mean, 2021). The written notice must include, at a minimum, a message that the supplier is not in the network, a reasonable approximation of the costs associated with the service, a directory of providers inside the hospital, and details on the previous authorization. Moreover, the notification must be accessible in the 15 most commonly used languages in the provider’s territory (What Does the No Surprises Act Mean, 2021). At the same time, the institution, not the provider, is liable for keeping these permission forms for out-of-network medical professionals providing services at an in-network hospital for the patient. This way, the notice and agreement documentation must be maintained for seven years following the treatment date.
Pharmaceutical Companies
As a result of the Bill, there is a possible expectation of an increase in the number of people purchasing drugs in pharmaceutical organizations. This is because of the massive decrease in anticipated out-of-pocket expense of surprise medical care, particularly in light of the extensive media coverage that typically surrounds the passing of such bans. In this regard, it is feasible that they will be more likely to go to the emergency department for marginal and less severe situations. This is due to the fact people will no longer be afraid of receiving a potentially catastrophic surprise cost from the emergency department that is not covered by their insurance.
The Financial Impact
Insurance Companies
When health plans refuse out-of-network claims or impose greater cost-sharing, customers are burdened financially by unexpected medical expenditures. The No Surprises Act (NSA) sets additional government safeguards against unexpected medical expenses, which financially benefit insurance companies. For example, over two million possible surprise fees were averted by insurance firms in the first two months of 2022, according to reports. If this tendency continues, more than 12 million unexpected expenses will be avoided annually (Gordon, 2022). As a result, the Bill has significantly cut expenditures for the organizations, allowing them to continue operations without interruption.
Healthcare Providers
Regardless of whether or not the legislation will enable doctors, the financial possibilities of healthcare professionals will be reduced. For instance, those who accept a call or provide emergency treatment will expand their practices using the same commercial methods they now use. This is due to the fact that the expense of obtaining and maintaining NSA compliance, as well as the cost of employing legal counsel, may exceed the money that is received through reimbursements (D’Orazio, 2022). It will be challenging for practices to maintain financial viability if a part of a provider’s income stream suddenly shifts to just above the levels Medicare reimburses them.
Pharmaceutical Companies
As a consequence of the Bill, a rise in the financial strength of insurance companies may be anticipated. This is due to the significant reduction in projected out-of-pocket costs for unexpected medical treatment, especially in light of the heavy media publicity that usually follows the passage of such bans. This is because consumers will not fear getting a possibly exorbitant medical cost and uninsured emergency department bill.
Benefits of No Surprises Act on Mentioned Stakeholders
On Insurance companies, the No Surprises Act put a stop to surprise medical billing in the vast majority of cases of giving medical coverage to their customers who faced unexpected medical expenses with relief. As a result, it has resulted in a rise in some of their income as an impact of a significant reduction in their sudden costs. However, on healthcare providers, the Bill permits some medical providers to request clients prior to forfeit safeguards against surprise medical bills by agreeing to an authorization exemption. Finally, pharmaceutical companies’ drug buying power has increased as an impact it has improved revenues of such service providers. This implies they must charge customers the same copayments or other expenses as in-network providers.
Drawbacks of No Surprises Act on Mentioned Stakeholders
The Act forbids out-of-network providers from submitting balance bills for critical patients and in-network medical services, so customers only spend the in-network financial assistance amount. Insurance providers have suggested that arbitration decisions would be prone to more fluctuation without rigorous restrictions, which would contribute to an increase in healthcare costs. In the pharmaceutical industry, many consumers have lost interest in preserving in-network status. Moreover, others withdrew from current in-network discussions and submitted cancellation letters to their in-network suppliers.
Conclusion-Takeaway points
Uninsured and self-pay consumers are entitled to a good faith estimate prior to non-emergency health care treatment. A reasonable conscience estimate indicates the cost of things and services that may be adequately anticipated to meet a patient’s health care requirements. The estimate is based on facts available when the projection was made and may include expenditures associated with the individual’s visit. Therefore, if a medical procedure is planned for at least three days, a practitioner should present customers with a written estimate at least one day in advance.
References
AHIP & Blue Cross Blue Shield Association. (2022). More than 2 million surprise bills avoided during January-February 2022: No surprises act prevents far more surprise bills than initial estimates of IDR volume, voters express concern about challenges to law. Web.
D’Orazio, D. (2022). Unexpected surprises in the No Surprises Act: How practices should respond. Physicians Practice. Web.
Gordon, D. (2022). No Surprises Act prevented 2 million surprise medical bills in 2 months, new study shows. Forbes. Web.
Karen Pollitz. (2021). No surprises act implementation: What to expect in 2022. KFF. Web.
No Surprises Act: A federal–state partnership to protect consumers from surprise medical bills. (2022). Commonwealthfund.org. Web.
What Does the No Surprises Act Mean for Providers? (2021). Symplr.com. Web.