No Surprises Act

TEBA is no stranger to well-intentioned legislation that ultimately misses the mark. Laws designed to help employers and maintain Tennessee's standing as the most business-friendly state sometimes achieve the opposite effect. The federally enacted No Surprises Act (NSA) is a prime example. While the Independent Dispute Resolution (IDR) system was created to arbitrate disputes between insurance providers and medical providers, the NSA has instead overwhelmed the IDR with claims, producing outcomes that disproportionately favor high-cost medical providers. 

How Does this Impact Employers in Tennessee? 

Workforce shortages, medical cost inflation, and prescription drug costs are crippling Tennessee employers. The NSA compounds these challenges. Though intended to protect families from unexpected medical charges, the Act has created a system that unpredictably drives up costs for employer-sponsored health plans. Rather than lowering benefit costs, the NSA undermines employers' ability to negotiate, increases premiums, and adds administrative expenses tied to the IDR process. As providers continue winning arbitration cases that force insurers to pay above their contracted rates, employers face mounting costs that threaten the sustainability of their health benefit offerings. 

Why Does TEBA Care? 

TEBA cares about employers and the employees who keep them in business. Tennessee employers now bear the burden of misguided federal policy, and many will have no choice but to pass these increased costs down to workers who are already struggling. TEBA believes that meaningful change must address the root causes of unaffordable benefit plans: excessive federal mandates and unchecked provider pricing. These are the real forces straining employer-sponsored health plans, and TEBA is actively advocating for reforms that will genuinely help both employers and employees across Tennessee. Protecting affordability for all remains our top priority.