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We have some serious legislation that is pending that will have a large impact on surprise billing. Emergency physicians will likely see a significant cut in their pay -- as much as 50% -- if legislation passes with intended financial goals.
The purpose of the legislation is straight forward. Nobody wants patients hit with huge out-of-network bills that insurers -- who are contracted to cover their members -- do not pay. A provider may not be in-network because of an insurance company's negotiated payments being too low, billing processes being too burdensome, etc. Right now, insurers that are in-network usually get reduced rates.
There is pending legislation (HR 861) that would require hospitals to disclose being out-of-network status for its services, which includes physician services such as anesthesia and emergency medicine. This is currently in the House Ways and Means Committee. A panel of the House Education and Labor's Subcommittee on Health, Employment, Labor, and Pensions recently held a hearing examining surprise billing. They concluded that patients should not be held responsible for the dispute.
Discussion was made on what to make insurers responsible for paying out-of-network providers. New York has legislation that requires out-of-network insurers to reimburse based on the FAIR Health Database, which is an aggregation of claims data. The Subcommittee's panel recommended out-of-network reimbursement at 125% of the Medicare rate, which has several problems. It's incredibly low compared to most current in-network rates and would give incentives for insurers to not renew their contracts with providers. They could low ball negotiations so that providers would be forced to take extremely low reimbursements. Also, Medicare is uncertain in the future. Future reimbursements may be even lower, which would mean private insurers would pay less.
This would have devastating consequences on emergency medicine. Most providers would not tolerate a 50% pay cut given the litiginous risk associated with EMTALA-mandated care. It would be one thing if the federal government granted sovereign immunity, but they will not do this anytime soon.
The Medicare formula has not made its way into HR 861 as an amendment as of yet, and there has been no new legislation introduced. Keep your eyes on this. The 125% formula is currently in play in Colorado, and we just recently defeated it in Georgia (150% of Medicare reimbursement).
For those emergency physicians not involved in politics, you may want to reconsider. PM me if you want additional info on how to get involved.
The purpose of the legislation is straight forward. Nobody wants patients hit with huge out-of-network bills that insurers -- who are contracted to cover their members -- do not pay. A provider may not be in-network because of an insurance company's negotiated payments being too low, billing processes being too burdensome, etc. Right now, insurers that are in-network usually get reduced rates.
There is pending legislation (HR 861) that would require hospitals to disclose being out-of-network status for its services, which includes physician services such as anesthesia and emergency medicine. This is currently in the House Ways and Means Committee. A panel of the House Education and Labor's Subcommittee on Health, Employment, Labor, and Pensions recently held a hearing examining surprise billing. They concluded that patients should not be held responsible for the dispute.
Discussion was made on what to make insurers responsible for paying out-of-network providers. New York has legislation that requires out-of-network insurers to reimburse based on the FAIR Health Database, which is an aggregation of claims data. The Subcommittee's panel recommended out-of-network reimbursement at 125% of the Medicare rate, which has several problems. It's incredibly low compared to most current in-network rates and would give incentives for insurers to not renew their contracts with providers. They could low ball negotiations so that providers would be forced to take extremely low reimbursements. Also, Medicare is uncertain in the future. Future reimbursements may be even lower, which would mean private insurers would pay less.
This would have devastating consequences on emergency medicine. Most providers would not tolerate a 50% pay cut given the litiginous risk associated with EMTALA-mandated care. It would be one thing if the federal government granted sovereign immunity, but they will not do this anytime soon.
The Medicare formula has not made its way into HR 861 as an amendment as of yet, and there has been no new legislation introduced. Keep your eyes on this. The 125% formula is currently in play in Colorado, and we just recently defeated it in Georgia (150% of Medicare reimbursement).
For those emergency physicians not involved in politics, you may want to reconsider. PM me if you want additional info on how to get involved.