AHA pens letter in support of No Fees for EFTs Act

The American Hospital Association (AHA) recently wrote a letter in support of a bill that would prohibit health plans from imposing fees on standard electronic fund transfers (EFT). The No Fees for EFTs Act, introduced by a bipartisan group of House members on November 28, would help providers combat unnecessary automatic charges and allocate funds appropriately, according to the AHA.

“These fees effectively reduce contracted rates and cost hospitals and healthcare systems substantial amounts of money that could otherwise be invested into patient care,” wrote Lisa Kidder Hrobsky, senior vice president of advocacy and political affairs at the AHA. This legislation is imperative because of the significant increase in costs associated with patient care, she wrote.

In a joint press release on the introduction of the No Fees for EFTs Act, U.S. Rep. Kim Schrier, MD, (D-Wash.) agreed that forcing doctors to pay a fee to receive payment for their services prevents them from receiving correct compensation. In addition, U.S. Rep. Mariannette Miller-Meeks, MD, (R-Iowa) acknowledged that EFT fees place an even greater administrative and financial burden on providers in rural areas.

According to a November 28 poll conducted by the Medical Group Management Association (MGMA), 60% of medical group leaders are being charged fees they didn’t agree to by insurers in order to receive electronic payments.

The Affordable Care Act requires health plans to offer medical practices the option to receive reimbursements electronically, but the EFT fee percentage can vary. More than three-fifths of respondents to the MGMA survey reported their average fee charged was at least 2% of their reimbursement.

Revenue integrity professionals should examine EFTs and payment transactions at their organization and keep an eye out for updates on the No Fees for EFTs Act.