Just another example that a system that is rotten to the core and based on extraction of maximal money cannot be fixed with little adjustments. It needs to go away.
A law meant to end surprise medical billing accidentally created a multibillion-dollar industry that is making doctors richer.
www.nytimes.com
Dr. Norman Rowe, a plastic surgeon with offices in New York and Florida,
advertises on his website that breast reduction surgery usually costs between $15,000 and $25,000.
But these days, his practice sometimes earns $440,000 for the procedure.
Dr. Rowe has taken full advantage of a new arbitration system, part of a major consumer protection law Congress passed in 2020 with
bipartisan majorities. The No Surprises Act was designed to eliminate surprise medical bills, for patients who showed up in the emergency room and were treated by a doctor who didn’t take their insurance.
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“This is a recipe for driving up health care costs,” said Karen Ignagni, the executive chair of EmblemHealth, which
sued Dr. Rowe in March, arguing his use of arbitration amounted to fraud. “There are no checks. There are no balances. There’s no oversight.”
When the law passed, government officials
estimated that about 17,000 cases would go to arbitration a year. Instead, doctors brought 1.2 million such cases in the first half of last year, and won around 88 percent of them.
The arbitrators are doing well too. The fees they earn for deciding cases, which range from
$425 to $1,150 per case, have added up. They earned
$885 million from 2022 to 2024.
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The money does not always end up with the doctors but instead can go to the owners of their practices. The Times interviewed two physicians who show up repeatedly in public data files. Both said they were salaried workers and uninvolved in the claims filed under their names.