Surprise Medical Bills Law Drives Up Healthcare Costs

The No Surprises Act, designed to protect Americans from surprise medical bills, has led to an increase in healthcare costs due to an arbitration process run amok. Out-of-network providers are using the law to extract enormous payments from health plans, resulting in higher costs for employers and individuals. As of September 2026, the law has prevented approximately 50 million surprise medical bills, but the arbitration process has driven up costs. Providers are winning the vast majority of disputes, with 85% of cases going in their favor. The number of disputes has grown significantly, from an estimated 17,000 annually to over 2 million last year. The increase in costs is likely to continue, with consumers bearing the burden of higher premiums. The law's success in preventing surprise medical bills has been overshadowed by the unintended consequences of the arbitration process.