What is the No Surprises Act?

Introduction

Surprise medical bills have long been a concern for patients, especially when receiving emergency care or unknowingly receiving services from out-of-network providers. To address this issue, the No Surprises Act (NSA) was enacted to protect patients from unexpected medical bills while ensuring transparency in healthcare pricing. Effective January 1, 2022, the law prohibits balance billing in certain scenarios and requires providers to offer good faith estimates (GFEs) to uninsured or self-pay patients.

For healthcare providers, compliance with the Act requires updates to billing practices, patient communication strategies, and dispute resolution procedures. This guide provides a comprehensive No Surprises Act summary, explains how to implement compliance measures, and details key aspects like the No Surprises Act complaint form and good faith estimate requirements.

1. No Surprises Act Summary

1.1 Overview of the No Surprises Act

The No Surprises Act is a federal law designed to prevent patients from receiving surprise medical bills for certain out-of-network healthcare services. It applies primarily in three situations:

• Emergency medical care received at an out-of-network hospital or freestanding emergency department.
• Non-emergency services provided by an out-of-network doctor at an in-network hospital or facility, unless the patient gives prior consent.
• Air ambulance services, though ground ambulance services are not covered under the Act.

Before the No Surprises Act, patients frequently received unexpected bills for out-of-network services, often unaware that a provider wasn’t covered by their insurance. This Act ensures that patients only pay in-network cost-sharing amounts for covered services, removing financial uncertainty in these situations.

For healthcare providers, staying compliant with NSA regulations requires efficient billing workflows and automation tools. Implementing a cloud-based EHR can help track patient encounters and integrate billing rules to ensure transparency in cost estimation.

1.2 Key Provisions of the No Surprises Act

The law establishes strict regulations on how providers can bill for out-of-network care. Some of its most important provisions include:

1. Ban on Balance Billing: Providers cannot bill patients more than the in-network cost-sharing amount for emergency or NSA-covered out-of-network services.
2. Good Faith Estimate (GFE) Requirement: Providers must give self-pay or uninsured patients an estimated breakdown of expected charges before treatment.
3. Independent Dispute Resolution (IDR) Process: A mechanism for resolving payment disputes between providers and insurance companies without billing the patient.
4. Advance Notice & Consent for Out-of-Network Care: Patients must be informed of out-of-network care before receiving non-emergency treatment and must sign consent forms when applicable.
5. No Surprises Act Complaint Form: Patients can file complaints with the Centers for Medicare & Medicaid Services (CMS) if they believe they were improperly charged.

These provisions create a new standard of transparency in healthcare billing, requiring providers to proactively inform patients about potential costs and limiting their ability to charge excessive fees for out-of-network care.

To streamline compliance and prevent claim denials, many practices use medical billing software that automates cost estimates, tracks payer contracts, and integrates with insurance reimbursement processes.

2. No Surprises Act Good Faith Estimate Requirements

2.1 What is a Good Faith Estimate?

A good faith estimate (GFE) is a cost estimate that healthcare providers must proactively give to uninsured or self-pay patients before they receive medical services. This estimate is intended to prevent financial surprises by giving patients a clear understanding of their expected medical expenses.

Providers must issue a GFE at least three business days in advance for scheduled services, and the estimate should include all foreseeable charges, even from related services like anesthesia or lab tests.

2.2 Key Elements of a Good Faith Estimate

A compliant GFE must contain the following details:

• Expected charges for all services related to the treatment.
• Billing codes and descriptions of the procedures.
• Provider details, including name, National Provider Identifier (NPI), and tax ID.
• A disclaimer stating that the estimate is not a final bill and that actual costs may vary.

The accuracy of GFEs is critical, as patients may dispute final charges if the total cost exceeds the estimate by a significant margin. For providers, this means ensuring that estimates are generated accurately and delivered to patients in a timely manner to comply with the law.

Integrating EHR software with patient engagement solutions allows providers to generate and deliver GFEs electronically, ensuring compliance while improving transparency.

2.3 How Providers Can Implement GFEs Effectively

Complying with the No Surprises Act good faith estimate requirement requires both procedural and technological updates within a medical practice. Providers can:

• Automate cost estimation using practice management software to calculate expected charges quickly and accurately.
• Educate front-office staff to explain GFEs to patients clearly and provide estimates in written form.
• Standardize GFE processes within the practice to ensure compliance across all departments.

By ensuring seamless implementation of GFEs, providers can not only comply with the No Surprises Act but also improve patient trust and financial transparency.

3. Implementing the No Surprises Act in Your Practice

3.1 Updating Billing and Coding Processes

To align with the No Surprises Act regulations, healthcare providers must revamp their billing procedures to ensure:

• Accurate classification of out-of-network services in billing software.
• Automated detection of balance billing scenarios and application of in-network cost-sharing adjustments.
• Real-time claims processing to verify insurance coverage and reimbursement rates before issuing charges.

Training billing and administrative staff is crucial to ensuring that all new regulations are followed correctly. Regular audits should also be conducted to ensure compliance with the law and avoid penalties.

3.2 Educating Patients and Staff

Patients often struggle with understanding medical bills, making clear communication essential. Healthcare providers should:

• Train front-office staff and financial counselors to explain GFEs and patient billing protections.
• Use printed brochures and online resources to educate patients about their rights under the No Surprises Act.
• Provide cost estimate tools on patient portals to allow easy access to GFEs before appointments.

The goal is to reduce confusion, build patient trust, and ensure compliance with the law.

Adopting AI-driven EHR solutions can help practices predict claim outcomes, flag billing errors, and maintain compliance with NSA mandates.

4. No Surprises Act Complaint Form & Common Challenges

4.1 No Surprises Act Complaint Form

If a patient believes they have been improperly billed for a service covered by the No Surprises Act, they can file a complaint with CMS through the official No Surprises Act complaint form.

Where to Access the Complaint Form?

• Online at CMS.gov/nosurprises
• By phone: 1-800-985-3059

4.2 Common Compliance Challenges and Solutions

Despite the clear benefits of the No Surprises Act, providers may face several compliance hurdles:

• Ensuring Accuracy in GFEs: Predicting total patient costs can be complex. Using automated cost-estimation tools helps ensure accuracy.
• Managing Increased Administrative Burden: Compliance requires additional documentation and staff training. Leveraging medical coding and billing best practices can streamline processes.
• Handling Disputes with Insurance Providers: Insurers may contest reimbursement amounts under IDR. Using revenue cycle management strategies can improve claim success rates.

By addressing these challenges proactively, providers can streamline compliance while avoiding potential legal issues.

5. Final Thoughts: Ensuring Long-Term Compliance

The No Surprises Act represents a significant shift in medical billing transparency and patient rights. Healthcare providers must stay ahead of compliance by:

• Implementing good faith estimate procedures for all uninsured/self-pay patients.
• Training staff on patient communication and dispute resolution strategies.
• Utilizing billing automation tools to streamline NSA compliance efforts.

By adopting these best practices, providers can avoid penalties, improve patient trust, and maintain financial stability under the No Surprises Act.