How a Law Intended to Prevent Surprise Medical Bills Increased Patient Costs

Under the law’s arbitration system, out-of-network providers win most disputes, collecting payments well above Medicare and in-network rates.

An ambulance in a stock photo. Shutterstock

The No Surprises Act, which went into effect in 2022, was designed to protect patients against surprise bills when they receive care from an out-of-network provider. Data suggest it has also had the unintended effect of raising medical costs.

The legislation ensures that consumers are well-protected from high charges for emergency care and out-of-network services that previously left them with unexpected medical bills, according to the Robert Wood Johnson Foundation, a health research and philanthropy organization.