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Provider reimbursement rule leading to higher costs: Regulators

Posted On: Mar. 27, 2023 10:03 AM CST

State officials want to repeal a policy established nearly 20 years ago to protect Alaskans from surprise medical bills that’s now being blamed for soaring health care costs in the state, the Anchorage Daily News reports. The regulation requires insurance companies to pay 80% of the market rate for any health care service regardless of whether the service is within an insurer’s network of providers, the report says. Critics say the also sets up a problematic scenario where providers who know they’ll get 80% of whatever is determined to be a “reasonable” rate increase prices.