Display options
Share it on

J Am Acad Orthop Surg. 2021 Dec 15;29(24):1072-1078. doi: 10.5435/JAAOS-D-21-00081.

Out-of-Network Billing in Privately Insured Patients Undergoing Elective Orthopaedic Surgery.

The Journal of the American Academy of Orthopaedic Surgeons

Kevin Y Wang, Krishna V Suresh, Andrew Harris, Majd Marrache, Varun Puvanesarajah, Joseph Levy, Amit Jain

Affiliations

  1. From the Department of Orthopaedic Surgery (Wang, Suresh, Harris, Marrache, Puvanesarajah, and Jain), Johns Hopkins University School of Medicine, and the Department of Health Policy and Management (Levy), Johns Hopkins Bloomberg School of Public Health, Baltimore, MD.

PMID: 34297702 DOI: 10.5435/JAAOS-D-21-00081

Abstract

BACKGROUND: Out-of-network charges during hospital care can result in unexpected or surprise bills for the patient. The aim of this study was to ascertain the frequency of out-of-network (OON) billing by the primary orthopaedic surgeon for commonly performed elective, inpatient procedures: total hip arthroplasty (THA), total knee arthroplasty (TKA), anterior cervical diskectomy and fusion (ACDF), and posterior lumbar fusion (PLF).

METHODS: Patients undergoing TKA, THA, one-level ACDF, and one-level PLF from 2010 to 2018 were queried using a commercially insured claims database with Current Procedural Terminology codes. The in-network (IN) versus OON status of the primary surgeon's submitted charges and the payor's reimbursement was recorded for each case. All costs were adjusted for inflation and reported in terms of 2018 real dollars. Bivariate analyses were performed.

RESULTS: Among the 549,868 elective orthopaedic cases, 6.7% were billed as OON by the primary orthopaedic surgeon: 6.1% TKA cases, 6.5% THA, 9.9% ACDF, and 8.5% PLF. From 2010 to 2018, a declining trend was seen in proportion of cases billed as OON by orthopaedic surgeons (P < 0.001 for each case). Mean reimbursement for claims paid as OON was 2.6 times higher than claims paid at the IN rate (range: 1.5 to 3.1 times higher; P < 0.001). The mean OON payments were higher by $1,284 for TKA, $2,516 for THA, $10,097 for ACDF, and $15,104 for PLF compared with mean IN payments (P < 0.001 for each). Compared with health maintenance organization-type plans, preferred provider organization-type plans reimbursed a greater percentage of the submitted claims at the OON rate (14.3% versus 44.5%, P < 0.001).

CONCLUSION: OON billing by the orthopaedic surgeon for TKA, THA, ACDF, and PLF is an uncommon and declining phenomenon.

LEVEL OF EVIDENCE: IV.

Copyright © 2021 by the American Academy of Orthopaedic Surgeons.

References

  1. Sun EC, Mello MM, Moshfegh J, Baker LC: Assessment of out-of-network billing for privately insured patients receiving care in in-network hospitals. JAMA Intern Med 2019;179:1543-1550. - PubMed
  2. Cooper Z, Scott Morton F: Out-of-Network emergency-physician bills - an unwelcome surprise. N Engl J Med 2016;375:1915-1918. - PubMed
  3. Dekhne MS, Nuliyalu U, Schoenfeld AJ, Dimick JB, Chhabra KR: “Surprise” out-of-network billing in orthopedic surgery: Charges from surprising sources. Ann Surg 2020;271:e116-e118. - PubMed
  4. Chhabra KR, Sheetz KH, Nuliyalu U, Dekhne MS, Ryan AM, Dimick JB: Out-of-Network bills for privately insured patients undergoing elective surgery with in-network primary surgeons and facilities. JAMA 2020;323:538-547. - PubMed
  5. HCUPnet: Agency for Healthcare Research and Quality. Available at: https://hcupnet.ahrq.gov/. Accessed January 14, 2021. - PubMed
  6. Truven Health Analytics: Truven Health MarketScan® Research Databases. Truven Heal Anal 2011. - PubMed
  7. Marrache M, Harris AB, Puvanesarajah V, et al.: Hospital payments increase as payments to surgeons decrease for common inpatient orthopaedic procedures. J Am Acad Orthop Surg Glob Res Rev 2020;4. - PubMed
  8. Wang K, Margalit A, Thakkar S, et al.: Reimbursement for orthopaedic surgeries in commercial and public payors: A race to the bottom. J Am Acad Orthop Surg 2021; Epub ahead of print. - PubMed
  9. CMS: National health expenditures 2018 highlights. 2018;10:1-15. - PubMed
  10. Cooper Z, Nguyen H, Shekita N, Morton FS: Out-of-network billing and negotiated payments for hospital-based physicians. Health Aff (Millwood) 2020;10 24-32. doi: 10.1377/hlthaff.2019.00507. - PubMed
  11. Network Health Providers Under Obamacare. eHealth 2020. Available at: https://www.ehealthinsurance.com/resources/affordable-care-act/network-health-providers-obamacare. Accessed January 14, 2021. - PubMed
  12. California SOF: Material, EL: Assembly Bill No. 72, 2017. - PubMed
  13. Adler L: California saw reduction in out-of-network care from affected specialties after 2017 surprise billing law. USC-Brooking Schaeffer Heal Policy 2019. - PubMed
  14. Weil AR: Patient costs, bundled payment, and more. Health Aff 2020;39:7. - PubMed
  15. Heath S: Bundled Billing Ineffective for Surprise Medical Bill Laws. 2019. Available at: https://patientengagementhit.com/news/bundled-billing-ineffective-for-surprise-medical-bill-laws. Accessed January 14, 2021. - PubMed
  16. Hoadley J, Lucia K, Fuchs B: Surprise billing protections: Help finally arrives for millions of Americans. Commonw Fund 2020. - PubMed
  17. Song Z, Johnson W, Kennedy K, Biniek JF, Wallace J: Out-of-network spending mostly declined in privately insured populations with a few notable exceptions from 2008 to 2016. Health Aff (Millwood) 2020;39:1032-1041. - PubMed
  18. Robinson JC, Whaley C, Brown TT: Association of reference pricing for diagnostic laboratory testing with changes in patient choices, prices, and total spending for diagnostic tests. JAMA Intern Med 2016;176:1353-1359. - PubMed
  19. Skinner J, Fisher E, Weinstein J: The 125 percent solution: Fixing variations in health care prices | health affairs. Heal Aff Blog 2014. Available at: https://www.healthaffairs.org/do/10.1377/hblog20140826.041002/full/. Accessed January 14, 2021. - PubMed
  20. Song Z: Using Medicare prices—toward equity and affordability in the ACA marketplace. N Engl J Med 2017;377:2309-2311. - PubMed
  21. Hoadley J, Ahn S, Lucia K: Balance billing: How are states protecting consumers from unexpected charges?—RWJF. Georg Univ Heal Pol Inst 2015. Available at: https://www.rwjf.org/en/library/research/2015/06/balance-billing--how-are-states-protecting-consumers-from-unexpe.html. Accessed January 14, 2021. - PubMed
  22. Medicare: Lower costs with assignment. 2020. Available at: https://www.medicare.gov/your-medicare-costs/part-a-costs/lower-costs-with-assignment. Accessed January 14, 2021. - PubMed
  23. Fuse Brown E, Trish E, Ly B, Hall M, Adler L: Out-of-Network air ambulance bills: Prevalence, magnitude, and policy solutions. Milbank Q 2020;98 474-774. - PubMed
  24. Duffy E: Influence of out-of-network payment standards on insurer–provider bargaining: California's experience. Am J Manag Care 2019;25. - PubMed
  25. Boccuti C, Neuman T: Private contracts between doctors and Medicare patients: key questions and implications of proposed policy changes. Available at: https://www.kff.org/medicare/issue-brief/private-contracts-between-doctors-and-medicare-patients-key-questions-and-implications-of-proposed-policy-changes/. Accessed January 14, 2021. - PubMed

Publication Types