Physician groups back legislation to penalize payers for late payments

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Several physician groups have announced their support for a piece of legislation that will fine payers that fail to pay physicians 30 days after losing the independent dispute resolution process laid out in the No Surprises Act.

The American College of Radiology, American College of Emergency Physicians and the American Society of Anesthesiologists all voiced strong support for the No Surprises Enforcement Act in a July 24 news release shared with Becker’s

Current legislation requires insurers to promptly pay physicians. If a physician or practice considers the payment to be inadequate, they can challenge it using the NSA’s IDR process. An independent arbiter then weighs in, and if they rule in favor of the physician, by law, the insurer must pay the physician or practice within 30 days. According to the release, insurers frequently fail to follow this 30-day rule. 

The new legislation will impose a penalty three times the difference between the insurer’s initial payment and the IDR arbiter’s ruling per claim, which will also be subject to interest. 

“Insurance companies taking advantage of flaws in the NSA system jeopardizes the sustainability of anesthesia practices, threatening access to care,” said ASA President Donald Arnold, MD. “This legislation would hold big insurance companies accountable and shows a continued bipartisan interest in improving the No Surprises Act system.”

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