Narrow networks fuel provider, insurer billing fights

Providers and insurers are blaming one another for surprising patients with medical bills, The Wall Street Journal reported.

Patients often face surprise bills after receiving treatment at an in-network hospital where they were cared for by an out-of-network emergency physician, radiologist, anesthesiologist or other healthcare specialist. Consumer advocates say the prevalence of narrow networks has made surprise bills more common.

The American College of Emergency Physicians filed a lawsuit against HHS in May, alleging an Affordable Care Act provision does not ensure reasonable payment to physicians for out-of-network emergency services.  The association says insurers have reduced payments to ER physicians up to 70 percent in recent years. Ontario, Calif.-based Prime Healthcare Services sued six insurers last month for allegedly using an incorrect system to set out-of-network rates, The Wall Street Journal reported.

However, insurers argue physicians are rejecting more in-network rates and charging higher, out-of-network rates, according to the report.

About 75 percent of plans sold through the federal marketplace this year extend no out-of-network coverage save for emergencies, according to The Wall Street Journal. Plan members can face unlimited costs, as out-of-pocket bills typically do not have out-of-pocket maximums.

Almost two dozen states passed or are considering legislation that would protect consumers from unexpected out-of-network medical costs.

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