| The background The No Surprises Act protects patients from unexpected bills and removes them from insurer-provider payment friction. The law requires insurers and providers to negotiate payment for 30 days, after which either side may pursue the Independent Dispute Resolution (IDR) process, where a neutral arbitrator selects one of the two proposed payment amounts. While IDR was intended as a last-resort mechanism, some in the industry argue it is now being overused by providers — an issue highlighted by a recent lawsuit Anthem filed against Prime Healthcare. Anthem's lawsuit Anthem Blue Cross Life and Health Insurance Company, an Elevance affiliate, filed a lawsuit earlier in January against 11 Prime Healthcare facilities in California. Anthem accused these facilities of "knowingly flooding" the IDR process with more than 6,000 ineligible disputes and "extracting millions of dollars in wrongfully obtained awards." Aside from this lawsuit, Elevance has cases against other companies in other states including in Georgia and Ohio. Soundbite "When this bill was passed, the federal government expected 17,000 of these cases to come through in any particular year," said Dr. Catherine Gaffigan, president of Elevance's health solutions business, in an interview. "Instead, what we have seen is millions of cases actually going through. And Elevance actually sees 17,000 of these a month. So clearly this has been exploited in ways that were never intended." Similar to 340B One industry expert — Michael Abrams of Numerof & Associates — compared the situation to the 340B Drug Pricing Program, which was designed to support safety-net providers but expanded rapidly over time. He argued that, like 340B, the IDR process was created with good intentions but risks being repurposed as a revenue-generating tool for hospitals rather than a limited backstop.
– By Marissa Plescia |
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