How a Law Intended to Prevent Surprise Medical Bills Increased Patient Costs

The No Surprises Act, which went into effect in 2022, was designed to protect patients against surprise bills when they receive care from an out-of-network provider. Data suggest it has also had the unintended effect of raising medical costs.
The legislation ensures that consumers are well-protected from high charges for emergency care and out-of-network services that previously left them with unexpected medical bills, according to the Robert Wood Johnson Foundation, a health research and philanthropy organization.
The problem lies with the law’s independent arbitration system, which was intended to be a seldom-used last resort for resolving disputes between providers and payers….