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  Bloomberg: Becerra Pressed to Improve Surprise Billing Dispute Process

  Posted by name on May 15, 2024 at 3:19 pm

  Becerra Pressed to Improve Surprise Billing Dispute Process

  o Arbitration implementation criticized by committee chairwoman

  o Becerra acknowledges early delays, says process is improving

  By Ian Lopez / May 15, 2024 02:27PM ET / Bloomberg Law

  Health and Human Services Secretary Xavier Becerra faced criticism on Capitol Hill over the Biden administration’s handling of a surprise billing dispute process that largely favors health-care providers over insurers.

  Rep. Virginia Foxx (R-N.C.), chairwoman of the House Committee on Education and the Workforce, pressed Becerra Wednesday on the government’s implementation of a dispute resolution process for insurers and providers to haggle over who covers surprise medical bills. Foxx criticized the process as “mired in litigation, delays and faulty implementation,” and pointed to research that she said suggests it will raise costs and premiums.

  Foxx’s remarks came as part of a hearing on the HHS’ fiscal 2025 budget request. Foxx took issue with an arbitration process implemented under the No Surprises Act, a law meant to reduce health-care costs. The independent dispute resolution (IDR) process is led by the HHS alongside the Treasury and Labor departments.

  The law aims to protect consumers from “surprise bills” incurred in emergencies and by treatment from out-of-network practitioners at in-network facilities.

  “We can do better to coordinate the implementation of the No Surprises Act to ensure it aligns with congressional intent. While the law has successfully protected millions of patients from receiving a surprise medical bill, the Tri-Agencies’ implementation of the independent dispute resolution process has been a disaster, and I worry it will only drive up health care costs further,” Foxx said in her opening statement.

  Data from earlier this year showed medical providers won 77% of arbitration cases in the first half of 2023.

  Foxx in Wednesday’s hearing asked Becerra what the agency was doing to improve the dispute process.

  The HHS secretary acknowledged the “gates got overcrowded” with filings in the dispute process’s early days, noting there were delays and a limited number of arbitrators. He said most of that has settled. He also said the dispute process initially saw “scores” of ineligible cases.

  Becerra said the HHS has scrubbed the system for efficiency and that things are now running faster.

  To contact the reporter on this story: Ian Lopez in Washington at ilopez@bloomberglaw.com

  To contact the editors responsible for this story: Brent Bierman at bbierman@bloomberglaw.com; Zachary Sherwood at zsherwood@bloombergindustry.com

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