PHI Health, a national air ambulance provider, is suing employers across the US for unpaid out-of-network medical helicopter bills, with individual claims reaching nearly $27,000. The lawsuits target both small businesses and large corporations, as well as public sector entities and nonprofits, according to STAT. Previously, providers sought payment from insurers, but are now increasingly pursuing employers directly after winning arbitration awards under the No Surprises Act.
The 2022 No Surprises Act was intended to protect patients from unexpected medical bills, but its arbitration process has led to higher payments for out-of-network providers. Georgetown University researchers estimate this has added around $20 billion in extra costs to the health care system, much of which is passed on to employers and workers through higher premiums. PHI Health has filed lawsuits against hundreds of companies, sometimes naming unknown defendants as placeholders if the plan sponsor is unclear.
Legal experts say this tactic shifts the financial burden from insurers to the employers who sponsor health plans, undermining claims that insurers are solely responsible for payment delays. The litigation adds complexity and risk for organisations managing employee health benefits, with the potential for further escalation as more providers adopt this approach.
