As Arbitration Drive Up Healthcare Costs, Diverse Stakeholders Call for Stronger Federal Oversight

Washington, D.C., February 24, 2026 – The ERISA Industry Committee (ERIC) along with more than 60 groups representing employers, labor, patients, and consumers today urged The U.S. Departments of Labor, Health and Human Services, and Treasury (the Tri-Departments) to take immediate action to address severe and negative consequences of the Independent Dispute Resolution (IDR) process under the No Surprises Act (NSA). While the NSA was designed to prevent surprise medical bills and lower health care costs, abuse of the IDR process is raising costs for patients, plan sponsors, health plans, and the broader health care system.

“The No Surprises Act was designed to protect families from financial harm caused by unexpected medical bills. Although progress has been made, the IDR’s last resort arbitration system has become a profit engine for some out-of-network providers who are exploiting it to secure large arbitration awards that should be directed toward patient care,” said Melissa Bartlett, Senior Vice President of Health Policy for ERIC. “While employer, patient, and consumer organizations have worked to promote responsible billing and reduce IDR misuse, stronger federal guardrails are essential to prevent ongoing abuse. We urge the Tri-Departments to restore the IDR process to its intended role by increasing transparency, oversight, and accountability to prevent misuse that is driving up patient costs and undermining the affordability and stability of employer-sponsored coverage.” Read the entire letter here.

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All media inquiries to The ERISA Industry Committee should be directed to media@eric.org.

About The ERISA Industry Committee
ERIC is a national advocacy organization that exclusively represents large employers that provide health, retirement, paid leave, and other benefits to their nationwide workforces. With member companies that are leaders in every sector of the economy, ERIC advocates on the federal, state, and local levels for policies that promote flexibility and uniformity in the administration of their employee benefit plans.