The impact of surprise billing laws on hospital-based physician prices and network participation

• Published in: Health economics, policy and law policy and law, 2024-12, p.1-39
• Main Authors: Garmon, Christopher, Li, Yiting, Retchin, Sheldon M, Xu, Wendy Yi
• Format: Article
• Language: English
• ISSN: 1744-1331; 1744-134X; 1744-134X
• DOI: 10.1017/S1744133124000239

Prior to the No Surprises Act (NSA), numerous states passed laws protecting patients from surprise medical bills from out-of-network (OON) hospital-based physicians supporting elective treatment in in-network hospitals. Even in non-emergency situations, patients have little ability to choose physicians such as anaesthesiologists, pathologists or radiologists. Using a comprehensive, multi-payer claims database, we estimated the effect of these laws on hospital-based physician reimbursement, charges, network participation and potential surprise billing episodes. Overall, the state laws were associated with a reduction in anaesthesiology prices and charges, but an increase in pathology and radiology prices. The price effects for each state exhibit substantial heterogeneity. California and New Jersey experienced increases in network participation by anaesthesiologists and pathologists and reductions in potential surprise billing episodes, but, overall, we find little evidence of changes in network participation across all of the states implementing surprise billing laws. Our results suggest that the effects of the NSA may vary across states.