10.08.2026 / Statement
New Legislation Would Close Loopholes in No Surprises Act, Alleviate Pressure on Health Premiums
Rep. Pallone’s bill would set a benchmark to prevent inflated payments and premiums — a solution supported by over 66 consumer, employer, and labor groups in a recent Families USA letter
WASHINGTON, D.C. – In response to new legislation introduced by Representative Frank Pallone (D-NJ) to help control health costs and stop the industry abuse of the independent dispute resolution (IDR) process in the No Surprises Act by replacing it with an evidence-based benchmark tied to 2019 contracted rates, Families USA Executive Director Anthony Wright issued the following statement:
“Even though the No Surprises Act is successfully preventing patients from getting unexpected out-of-network bills, consumers also need additional protection against inflated premiums. Private equity firms and corporate middlemen are abusing the law’s arbitration process to collect payments multiple times what is normally paid, extracting windfall profits that get passed on to all of us through higher premiums.
“Congress needs to close the loopholes in the law that are leading to higher health premiums. We are thrilled Rep. Pallone is proposing this common-sense solution to end the industry abuse of arbitration by replacing it with a market-based benchmark. This bill would take away the incentive for corporate middlemen to flood the system with disputes and win inflated payouts.
“We see similar momentum in the Senate for a solution, and hope Congress can move quickly to control costs and continue to protect consumers. Nearly 70 organizations representing consumers, patients, and other payers joined our recent letter to Congressional leadership urging action to establish a predictable, transparent benchmark payment to provide certainty for patients, providers, and health plans. This solution is urgently needed for payers and for the public that rank health care costs as their top concern and are demanding that Congress take on the corporate greed that is running rampant throughout our health care system and driving up costs for all Americans.
“Several states have shown us how to successfully solve for surprise medical bills without an arbitration process that can be abused. Fixing the No Surprises Act with a clear, evidence-based benchmark for provider payments, as Representative Pallone’s bill would do, is a proven patient protection against high payments and premiums.”
RESOURCES
Families USA, a leading supporter of the No Surprise Act and its patient protections preventing surprise medical bills, recently led a letter to Congress to support federal fixes to prevent inflated provider payments and premiums. Families USA also release two recent reports: