Insurance Broker

A Conversation With: Founder & CEO Brian Freeman on the No Surprises Act

UPDATED ON
December 19, 2022
Abbey Dean
Abbey Dean
— Written By
Print Friendly and PDF

A new protection in the No Surprises Act will ban “surprise” balance billing beginning on or after January 1st, 2022. On average, 18% of emergency department visits result in at least one surprise bill, but the rate varies by state.For a deeper dive into how the No Surprises Act will affect employers and brokers, we sat down with Mployer Advisor Founder and CEO Brian Freeman.Q: Why is the No Surprises Act an important topic for insurance brokers and employers in the insurance industry today?BF: Good question. The No Surprises Act is some of the most meaningful legislation that has been passed in the last decade to protect employers. This will save employees on employer-sponsored health care over $20 billion a year.Q: The No Surprises Act takes effect on January 1, 2022. What should employers expect to receive from their brokers?BF: There are two main segments of the No Surprises Act. The first is the elimination of out-of-network charges for employees. Every employer should communicate to their employees details about what will no longer be required for out-of-network bills under specific circumstances. The second are the Additional Fee Disclosures. More will come over the next 90 days, but that should be a win for employers, top brokers and the industry in general.Q: What about on the broker side? How should brokers assess their readiness? BF: The biggest change for brokers is the Additional Fee Disclosures. That legislation is still evolving, but it will take effect January 1st, 2022. More than likely, this will mirror a lot of the disclosures that are currently required in the 401(k) space. So one: Brokers need to understand what the changes are and what the final outcome will be. And two: How should brokers communicate those changes to their employer customers?Q: Do you have any predictions about how the No Surprises Act could change practices in states with existing balance billing protections? BF: States had to start implementing their own laws, because there was nothing from a federal perspective protecting the state. So, each state took it upon themselves to start building up their own. Now, there will be a federal law that should protect everyone. States can enact additional legislation on top of that to offer further protections, but there will finally be a baseline protection for all employers and employees.Q: Do you have any examples of what protections look like in those states? BF: Currently, I think about 20 of the 50 states have some form of balance billing protection. Some of those are specific to air ambulances, helicopters and so on.Q: Do you think the No Surprises Act represents an important shift in the industry?BF: Yes, absolutely–both for the elimination of out-of-network billing, as well as for broker fee disclosure. This legislation empowers the employer and the patient; in fact, this act grants them more power than they’ve ever had in the history of U.S. healthcare. This moment marks a great step forward for transparency and for the industry.Q: Is there anything else about the No Surprises Act, for either employers or brokers, that you think is important to mention that we haven't yet discussed?BF: A lot of people put a lot of time and effort into this cause over the past 10 years, from local legislators to prominent figures like Dr. Marty Makary. The No Surprises Act marks a big win for employers and employees, and I believe this moment should be communicated and celebrated.To learn more about the No Surprises Act, check out Mployer Advisor’s latest webinar the “No Surprises Act: Employee Impact & Broker Fee Disclosure.Click here to view this free, on-demand webinar featuring Mployer Advisor CEO & Founder Brian Freeman and James Bristol and Sarah Hooper of Waller, a Nashville, Tennessee-based law firm.Looking for more exclusive content? Read on for the latest news and industry updates from the Mployer Advisor blog.

Want more insights on how your employee benefits compare to companies in your region, industry, and similar employer size?
Download Your Custom Benefits Report Now
See How Your Employee Benefits Compare

Next Up

Legal/Compliance Roundup - February 2024
Each month, Mployer Advisor collects and presents some of the most relevant and most pressing recent changes in law, compliance, and policy in areas related to employee benefits, health care, and human resources. 
Legal/Compliance Roundup - March 2024
Each month, Mployer Advisor collects and presents some of the most relevant and most pressing recent changes in law, compliance, and policy in areas related to employee benefits, health care, and human resources.
Legal/Compliance Roundup - April 2024
‍Each month, Mployer Advisor collects and presents some of the most relevant and most pressing recent changes in law, compliance, and policy in areas related to employee benefits, health care, and human resources.