The No Surprises Act created an arbitration system for disputes between insurance companies and out of network doctors. Arbitrators consistently rule for providers, which has led the system to be utilized much more than expected. Initial estimates was that arbitration would be used ~17,000 times per year, instead it was used 2.6 million times in 2025. Providers request awards roughly 5x, with some specialties like neurology and surgery being 25x and 15x, the standard rate on average. They know refusing the insurance companies offers can be financially beneficial and are abusing the system.
This is relevant to rNeoliberal because it discussed how a well meaning regulation can have significant downsides. It involves the high US healthcare costs, an important issue in the US, and shows that providers cause a significant part of the high costs
Posted by quiplaam