Rep. Frank Pallone (D-N.J.) has introduced a new bill that would eliminate the arbitration process used to resolve disputes between health insurers and out-of-network providers under the No Surprises Act. The Lower Premiums, Faster Payments Act proposes replacing the current dispute resolution system with one based on median in-network rates.
The proposal has drawn immediate opposition from provider groups, who view the existing arbitration process as a significant financial benefit. Conversely, academics and consumer advocates have praised the plan. Pallone, who co-authored the No Surprises Act, stated that the law has been an overwhelming success in protecting patients from surprise bills. The new legislation seeks to address issues within the current problem-plagued arbitration system by shifting to a payment structure tied to standard in-network pricing.