February 22, 2022

What consumers need to know about the new No Surprises Act

New federal laws in place to protect consumers from surprise billing

As of January 1, 2022, consumers have new billing protections when getting emergency care, non-emergency care from out-of-network providers at in-network facilities, and air ambulance services from out-of-network providers. Through new rules aimed to protect consumers, excessive out-of-pocket costs are restricted, and emergency services must continue to be covered without any prior authorization, and regardless of whether or not a provider or facility is in network. New laws are now in place to protect consumers from surprise bills or balance bills, from health care providers.

What is balance billing?

Balance billing occurs when a health care provider bills a patient after the patient’s health insurance company has paid its portion. The balance bill is for the difference between the amount the provider charges and the price the insurance company sets, after the patient pays any co-pay, co-insurance, or deductible.

  • Balance billing can occur when a consumer receives health care services from an out-of-network provider or at an out-of-network facility.
  • In-network providers agree with an insurance company to accept the insurance payment in full. In-network providers agree not to balance bill.
  • Out-of-network providers do not have this agreement with the insurance company. Therefore, in the past they sometimes billed the patient for the amount not covered by insurance.
  • Some health plans, such as Preferred Provider Organization (PPO) or Point of Service (POS) plans, offer some coverage for out-of-network care, but the provider can still balance bill the patient. Other plans offer no coverage for out-of-network providers and leave the financial responsibility entirely on the consumer.
  • Balance billing is prohibited in both Medicare and Medicaid.

What is surprise billing?

  • Surprise billing occurs when a patient receives a balance bill after unknowingly receiving care from an out-of-network provider or an out-of-network facility, such as a hospital. This can occur in emergency and non-emergency situations.

    Some states have enacted protections for consumers against surprise billing. However, state laws do not apply to self-insured health plans, which account for the majority of people who get coverage through an employer.  Now, federal law adds additional protections.

What are the new protections for consumers who have health insurance?

If you get health coverage through your employer, or an individual health insurance plan you purchase, these new rules will:

  • Ban surprise bills for emergency services, even if you get them out-of-network and without approval beforehand (prior authorization).
  • Ban out-of-network cost-sharing (like out-of-network coinsurance or copayments) for all emergency and some non-emergency services. You can’t be charged more than in-network cost-sharing for these services.
  • Ban out-of-network charges and balance bills for supplemental care (like anesthesiology or radiology) by out-of-network providers who work at an in-network facility.
  • Require that health care providers and facilities give you an easy-to-understand notice explaining that getting care out-of-network could be more expensive and options to avoid balance bills. You’re not required to sign this notice or get care out-of-network.

You can get more information and make complaints to federal agencies by calling 1-800-985-3059 or by visiting https://www.cms.gov/nosurprises/consumers/complaints-about-medical-billing.

You can also visit https://insurance.mo.gov/consumers/health/no-surprises-act.php for more information about the No Surprises Act or contact the Missouri Department of Commerce and Insurance at 1-800-726-7390.