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Federal and Ohio Laws on Surprise Billing

Client Alert

Beginning in January 2022, Ohio providers and healthcare facilities will need to comply with both the federal No Surprises Act (“NSA”) and the state surprise billing law (HB 388), which are designed to protect patients from unexpected medical bills. 

Federal Law: No Surprises Act 

Three Final Rules implement the federal No Surprises Act (NSA). These rules were published throughout 2021 and took effect on January 1, 2022. Part I of the NSA applies to emergency services (including post-emergency stabilization services) and out-of-network nonemergency services provided in, but billed separately from, a participating facility, including a hospital, ambulatory surgical center, or critical access hospital. This Part limits cost-sharing that patients are required to pay for these services, prohibits balance billing with some exceptions, and requires facilities to notify patients of their rights and protections against surprise medical bills. The NSA also applies to air ambulance transportation for both emergency and non-emergency purposes, as implemented in a separate Final Rule. 

Part II requires state licensed or certified health care providers to provide to every patient who is uninsured or self-pay (including people who are not planning on submitting a claim to their insurance for their services) a Good Faith Estimate (“GFE”) of the cost of the patient’s healthcare services. Part II also established independent dispute resolution systems (specifically, arbitration systems) for resolving provider/payor reimbursement disputes and provider/patient disputes. 

More information on the NSA can be found in BMD’s previously released client alerts regarding Part I and Part II. CMS has also developed a website for providers and patients to use for NSA information and dispute resolution. 

State Law: HB 388 – Regarding Out-of-Network Health Care 

HB 388, passed in the 133rd General Assembly, took effect on January 12, 2022. This law protects patients receiving care in Ohio from surprise bills for emergency services and out-of-network services provided at, but billed separately from, an in-network facility, as well as out-of-network ground ambulance services and clinical laboratory services provided in connection with unanticipated out-of-network care or emergency services. Under HB 388, balance billing for out-of-network services performed at an in-network facility is only allowable if: the provider informs the patient that the provider is out-of-network, the provider gives a good faith estimate of the cost of services to the patient, and the patient consents to the services. 

Ohio’s law also requires applicable health plans to reimburse providers for unanticipated and emergency out-of-network care at the greatest of the following rates, unless the provider independently negotiates a rate: 1) the median amount the health plan issuer negotiated with in-network payees for the service in question in that geographic region; 2) the rate the health plan issuer pays for out-of-network services under the health benefit plan; or 3) the rate paid by Medicare for the service in question. Ohio also created an arbitration procedure that providers can use to dispute their reimbursement with the payor. Ohio has also developed a website with information for providers and consumers. 

How do the state and federal laws work together? 

While the NSA and Ohio’s law are complimentary, they do have some differences. Generally, the NSA is enforceable against self-funded health plans subject to the Employee Retirement Income Security Act and individual plans purchased directly or through the Health Insurance Marketplace® while the Ohio law is enforceable against those health plans regulated by the Ohio Department of Insurance. CMS has stated that the NSA was meant to act as a “floor” for protections against surprise billing and will allow state law to control if that state law determines payment amounts for out-of-network providers and facilities. Ohio’s law provides additional coverage for ground ambulance services while the federal law only covers air ambulance services. Also, the dispute resolution arbitration provisions regarding the types of information an arbiter will consider and the costs for the parties are somewhat different between the two laws. 

If you have any questions about the No Surprises Act and how it applies to your practice, please contact BMD Healthcare and Hospital Law Members Ashley Watson (abwatson@bmdllc.com) or Daphne Kackloudis (dlkackloudis@bmdllc.com).

This article does not constitute legal advice.


“In for a Penny, in for a Pound” is No Longer the Case for Florida Lawyers

On April 1, 2024, newly adopted Rule 1.041 to the Florida Rules of Civil Procedures goes into effect which creates a procedure for an attorney to appear in a limited manner in civil proceedings.  Currently, when a Florida attorney appears in a civil proceeding, he or she is reasonable for handling all aspects of the case for their client.  This new rule authorizes an attorney to file a notice limiting the attorney’s appearance to particular proceedings or specified matters prior to any appearance before the court.  For example, an attorney can now appear for the limited purpose of filing and arguing a motion to dismiss.  Once the motion to dismiss is heard by the court, the attorney may file a notice of termination of limited appearance and will have no further obligations in the case.

Enhancing Privacy Protections for Substance Use Disorder Patient Records

On February 8, 2024, the U.S. Department of Health and Human Services (“HHS”) finalized updated rules to 42 CFR Part 2 (“Part 2”) for the protection of Substance Use Disorder (“SUD”) patient records. The updated rules reflect the requirement that the Part 2 rules be more closely aligned with the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) privacy, breach notification, and enforcement rules as mandated by the Coronavirus Aid, Relief, and Economic Security Act of 2020.

Columbus, Ohio Ordinance Prohibits Employers from Inquiries into an Applicant’s Salary History

Effective March 1, 2024, Columbus employers are prohibited from inquiring into an applicant’s salary history. Specifically, the ordinance provides that it is an unlawful discriminatory practice to:

The Ohio Chemical Dependency Professionals Board’s Latest Batch of Rules: What Providers Should Know

The Ohio Chemical Dependency Professionals Board has introduced new rules and amendments, covering various aspects such as CDCA certificate requirements, expanded services for LCDCs and CDCAs, remote supervision, and reciprocity application requirements. Notable changes include revised criteria for obtaining a CDCA certification, expanded services for LCDCs and CDCAs, and updated ethical obligations for licensees and certificate holders, including non-discrimination, confidentiality, and anti-sexual harassment measures.

Governor Mike DeWine and The Ohio State University Introduce the SOAR Study on Ohio Mental Illness

On January 19, Ohio Gov. Mike DeWine and The Ohio State University announced a new research initiative, the State of Ohio Adversity and Resilience (“SOAR”) study, which will investigate all factors influencing Ohio’s mental illness and addiction epidemic.