By Craid Gottwalls
The No Surprises Act was designed to protect patients from unexpected medical bills. That is a noble goal. The mechanism created to settle those out-of-network claims, known as Independent Dispute Resolution, is having a very different effect. It has become an inflationary engine for the entire healthcare system.
Here is what the data tells us about the IDR process.
- Research indicates IDR added an estimated $5 billion in costs during its first three years.
- Providers are currently winning 88% of these disputes.
- Winning providers are often paid three to four times the comparable in-network rate.
All of these costs flow downstream to the employers and employees who fund the plans.
