Lower Premiums, Faster Payments Act: Overhauling Health Insurance Arbitration

Frank Pallone, Jr., Ranking Member of the Energy and Commerce Committee, has introduced the Lower Premiums, Faster Payments Act to address inefficiencies in the current arbitration process under the No Surprises Act, which are impacting health insurance premiums.

The No Surprises Act was originally designed to protect patients from unexpected medical bills by insulating them from provider-insurer disputes. However, Pallone and others have identified issues with the arbitration component that have been exacerbated by manipulation from certain entities, often tied to private equity, which has led to delays and increased premiums. In fact, data from 2025 shows that ten provider groups were responsible for about 67% of 2.5 million arbitration cases. Arbitration firms, which collected $1.3 billion in fees that year, awarded nearly $15 billion to providers—figures that indicate significant pressure on consumer and employer premiums.

Proposed Legislative Reforms

The proposed reforms under the Lower Premiums, Faster Payments Act seek to overhaul this arbitration process by tying payment resolutions to the median in-network rate. This strategy aims to streamline payment procedures and curtail the financial exploitation seen in the current system. Moreover, the act mandates the issuance of payments within 30 days of a claim being filed, which could significantly expedite financial transactions and reduce premium-related stresses.

Implications for Insurance Professionals

If adopted, this legislation could lead to sweeping changes in how billing disputes are managed. Insurance professionals—including agents, brokers, and underwriters—will need to adapt to the new payment process, potentially reshaping current practices in claims management and regulatory compliance. The emphasis on efficiency and fairness might also influence underwriting strategies and carrier responses.

According to supporters like Anthony Wright from Families USA, implementing these changes could help align the healthcare payment system with market standards, easing financial burdens on consumers and providers alike. As the proposal progresses through legislative channels, insurance stakeholders will be keenly watching for developments that might affect policy offerings and premium calculations.