S. 2420

119 S2420 IS: No Surprises Act Enforcement Act
 U.S. Senate
 2025-07-23
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
  II
  119th CONGRESS
  1st Session
  S. 2420
  IN THE SENATE OF THE UNITED STATES
  July 23, 2025
  Mr. Marshall  (for himself and  Mr. Bennet ) introduced the following bill; which was
  read twice and referred to the  Committee on
  Health, Education, Labor, and Pensions
  A BILL
To amend title XXVII of the Public Health Service Act, the Employee
  Retirement Income Security Act of 1974, and the Internal Revenue Code of 1986 to
  increase penalties for group health plans, health insurance issuers, and
  nonparticipating providers or facilities for practices that violate balance billing
  requirements, and for other purposes.
1.
Short title
This Act may be cited as the   No Surprises Act Enforcement Act  .
2.
Increasing penalties for group health plans and health insurance issuers for
  practices that violate balance billing requirements
(a)
PHSA
Section 2723(b)(2)(C) of the Public Health Service Act ( 42 U.S.C. 300gg–22(b)(2)(C) ) is amended—
(1)
in clause (i), by inserting  (or, in the case of such a failure with respect to a provision specified in clause (iv), $10,000 per violation)  after  $100 ; and
(2)
by adding at the end the following new clause:
(iv)
Provisions specified
For purposes of clause (i), the provisions specified in this clause are the following:
(I)
Subparagraphs (A) and (B) of section 2799A–1(a)(1).
(II)
Clauses (i), (ii), (iii), and (v) of section 2799A–1(a)(1)(C).
(III)
Subparagraphs (A), (B), and (E) of section 2799A–1(b)(1).
(IV)
Paragraphs (1) and (2) of section 2799A–2(a).
  .
(b)
ERISA
Section 502 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1131 ) is amended—
(1)
in subsection (a)(6), by striking  or (9)  and inserting  (9), or (12) ;
(2)
in subsection (b)(3)—
(A)
by inserting  , (c)(12),  after  subsections (c)(9) ; and
(B)
by inserting  or (c)(12)  after  under subsection (c)(9) ; and
(3)
in subsection (c), by adding at the end the following new paragraph:
(12)
The Secretary may assess a civil penalty against any group health plan or health insurance issuer offering group health insurance coverage of not more than $10,000 per violation for each individual with respect to which such plan or coverage fails to comply with one of the following provisions:
(A)
Subparagraphs (A) and (B) of section 716(a)(1).
(B)
Clauses (i), (ii), (iii), and (v) of section 716(a)(1)(C).
(C)
Subparagraphs (A), (B), and (E) of section 716(b)(1).
(D)
Paragraphs (1) and (2) of section 717(a).
  .
(c)
IRC
 Section 4980D(b)  of the Internal Revenue Code of 1986 is amended—
(1)
in paragraph (1), by inserting  (or, in the case of such a failure with respect to a provision specified in paragraph (4), $10,000)  after  $100 ; and
(2)
by adding at the end the following new paragraph:
(4)
Provisions specified
For purposes of paragraph (1), the provisions specified in this paragraph are the following:
(A)
Subparagraphs (A) and (B) of section 9816(a)(1).
(B)
Clauses (i), (ii), (iii), and (v) of section 9816(a)(1)(C).
(C)
Subparagraphs (A), (B), and (E) of section 9816(b)(1).
(D)
Paragraphs (1) and (2) of section 9817(a).
  .
3.
Additional penalties for late payment or non-payment after IDR entity payment
  determination
(a)
PHSA
(1)
Emergency and nonemergency services
Section 2799A–1(c)(6) of the Public Health Service Act ( 42 U.S.C. 300gg–111(c)(6) ) is amended—
(A)
in the paragraph heading, by inserting
; penalty for late payment or non-payment   after
payment  ;
(B)
by striking  The total plan  and inserting the following:
(A)
Timing of payment
The total plan
  ;
(C)
in subparagraph (A), as so inserted, by adding at the end the following new sentence:  In the case such determination is an amount less than the sum of the initial payment for such item or service and any cost sharing required to be paid by the individual receiving such item or service, the nonparticipating provider or facility furnishing such item or service shall pay to such plan or coverage the difference between such determination and such sum not later than 30 days after the date on which such determination is made. ; and
(D)
by adding at the end the following new subparagraphs:
(B)
Notification
In the case of a plan or coverage, or a nonparticipating provider or facility, required to make a payment pursuant to a determination described in subparagraph (A), such plan or coverage or nonparticipating provider or facility shall submit to the Secretary a notification of such payment as of the date such payment is made in a manner specified by the Secretary.
(C)
Penalty for late payment or non-payment
(i)
In general
In the case of a plan or coverage, or a nonparticipating provider or facility, that has not made the required payment described in subparagraph (A) with respect to an item or service in the time period described in such subparagraph, in addition to making such payment, such plan or coverage or nonparticipating provider or facility shall also pay to the nonparticipating provider or facility or plan or coverage (as applicable) an amount that is three times the difference between—
(I)
the initial payment (or, in the case of a notice of denial of payment, $0) described in subsection (a)(1)(C)(iv)(I) or (b)(1)(C), as applicable; and
(II)
the out-of-network rate (as defined in subsection (a)(3)(K)) for such item or service (less any cost sharing required to be paid by the individual receiving such item or service).
(ii)
Interest
A late payment penalty under clause (i) shall also be subject to interest in a manner specified by the Secretary.
  .
(2)
Air ambulance services
Section 2799A–2(b)(6) of the Public Health Service Act ( 42 U.S.C. 300gg–112(b)(6) ) is amended—
(A)
in the paragraph heading, by inserting
; penalty for late payment or non-payment   after
payment  ;
(B)
by striking  The total plan  and inserting the following:
(A)
Timing of payment
The total plan
  ;
(C)
in subparagraph (A), as so inserted, by adding at the end the following new sentence:  In the case such determination is an amount less than the sum of the initial payment for such item or service and any cost sharing required to be paid by the individual receiving such item or service, the nonparticipating provider or facility furnishing such item or service shall pay to such plan or coverage the difference between such determination and such sum not later than 30 days after the date on which such determination is made. ; and
(D)
by adding at the end the following new subparagraphs:
(B)
Notification
In the case of a plan or coverage, or a nonparticipating provider or facility, required to make a payment pursuant to a determination described in subparagraph (A), such plan or coverage or nonparticipating provider or facility shall submit to the Secretary a notification of such payment as of the date such payment is made in a manner specified by the Secretary.
(C)
Penalty for late payment or non-payment
(i)
In general
In the case of a plan or coverage, or a nonparticipating provider or facility, that has not made the required payment described in subparagraph (A) with respect to an item or service in the time period described in such subparagraph, in addition to making such payment, such plan or coverage or nonparticipating provider or facility shall also pay to the nonparticipating provider or facility or plan or coverage (as applicable) an amount that is three times the difference between—
(I)
the initial payment (or, in the case of a notice of denial of payment, $0) described in subsection (a)(3)(A); and
(II)
the out-of-network rate (as defined in section 2799–1(a)(3)(K)) for such item or service (less any cost sharing required to be paid by the individual receiving such item or service).
(ii)
Interest
A late payment penalty under clause (i) shall also be subject to interest in a manner specified by the Secretary.
  .
(b)
ERISA
(1)
Emergency and nonemergency services
Section 716(c)(6) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1185e(c)(6) ) is amended—
(A)
in the paragraph heading, by inserting
; penalty for late payment or non-payment   after
payment  ;
(B)
by striking  The total plan  and inserting the following:
(A)
Timing of payment
The total plan
  ;
(C)
in subparagraph (A), as so inserted, by adding at the end the following new sentence:  In the case such determination is an amount less than the sum of the initial payment for such item or service and any cost sharing required to be paid by the individual receiving such item or service, the nonparticipating provider or facility furnishing such item or service shall pay to such plan or coverage the difference between such determination and such sum not later than 30 days after the date on which such determination is made. ; and
(D)
by adding at the end the following new subparagraphs:
(B)
Notification
In the case of a plan or coverage, or a nonparticipating provider or facility, required to make a payment pursuant to a determination described in subparagraph (A), such plan or coverage or nonparticipating provider or facility shall submit to the Secretary a notification of such payment as of the date such payment is made in a manner specified by the Secretary.
(C)
Penalty for late payment or non-payment
(i)
In general
In the case of a plan or coverage, or a nonparticipating provider or facility, that has not made the required payment described in subparagraph (A) with respect to an item or service in the time period described in such subparagraph, in addition to making such payment, such plan or coverage or nonparticipating provider or facility shall also pay to the nonparticipating provider or facility or plan or coverage (as applicable) an amount that is three times the difference between—
(I)
the initial payment (or, in the case of a notice of denial of payment, $0) described in subsection (a)(1)(C)(iv)(I) or (b)(1)(C), as applicable; and
(II)
the out-of-network rate (as defined in subsection (a)(3)(K)) for such item or service (less any cost sharing required to be paid by the individual receiving such item or service).
(ii)
Interest
A late payment penalty under clause (i) shall also be subject to interest in a manner specified by the Secretary.
  .
(2)
Air ambulance services
Section 717(b)(6) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1185f(b)(6) ) is amended—
(A)
in the paragraph heading, by inserting
; penalty for late payment or non-payment   after
payment  ;
(B)
by striking  The total plan  and inserting the following:
(A)
Timing of payment
The total plan
  ;
(C)
in subparagraph (A), as so inserted, by adding at the end the following new sentence:  In the case such determination is an amount less than the sum of the initial payment for such item or service and any cost sharing required to be paid by the individual receiving such item or service, the nonparticipating provider or facility furnishing such item or service shall pay to such plan or coverage the difference between such determination and such sum not later than 30 days after the date on which such determination is made. ; and
(D)
by adding at the end the following new subparagraphs:
(B)
Notification
In the case of a plan or coverage, or a nonparticipating provider or facility, required to make a payment pursuant to a determination described in subparagraph (A), such plan or coverage or nonparticipating provider or facility shall submit to the Secretary a notification of such payment as of the date such payment is made in a manner specified by the Secretary.
(C)
Penalty for late payment or non-payment
(i)
In general
In the case of a plan or coverage, or a nonparticipating provider or facility, that has not made the required payment described in subparagraph (A) with respect to an item or service in the time period described in such subparagraph, in addition to making such payment, such plan or coverage or nonparticipating provider or facility shall also pay to the nonparticipating provider or facility or plan or coverage (as applicable) an amount that is three times the difference between—
(I)
the initial payment (or, in the case of a notice of denial of payment, $0) described in subsection (a)(3)(A); and
(II)
the out-of-network rate (as defined in section 716(a)(3)(K)) for such item or service (less any cost sharing required to be paid by the individual receiving such item or service).
(ii)
Interest
A late payment penalty under clause (i) shall also be subject to interest in a manner specified by the Secretary.
  .
(c)
IRC
(1)
Emergency and nonemergency services
 Section 9816(c)(6)  of the Internal Revenue Code of 1986 is amended—
(A)
in the paragraph heading, by inserting
; penalty for late payment or non-payment   after
payment  ;
(B)
by striking  The total plan  and inserting the following:
(A)
Timing of payment
The total plan
  ;
(C)
in subparagraph (A), as so inserted, by adding at the end the following new sentence:  In the case such determination is an amount less than the sum of the initial payment for such item or service and any cost sharing required to be paid by the individual receiving such item or service, the nonparticipating provider or facility furnishing such item or service shall pay to such plan the difference between such determination and such sum not later than 30 days after the date on which such determination is made. ; and
(D)
by adding at the end the following new subparagraphs:
(B)
Notification
In the case of a plan, or a nonparticipating provider or facility, required to make a payment pursuant to a determination described in subparagraph (A), such plan or nonparticipating provider or facility shall submit to the Secretary a notification of such payment as of the date such payment is made in a manner specified by the Secretary.
(C)
Penalty for late payment or non-payment
(i)
In general
In the case of a plan, or a nonparticipating provider or facility, that has not made the required payment described in subparagraph (A) with respect to an item or service in the time period described in such subparagraph, in addition to making such payment, such plan or nonparticipating provider or facility shall also pay to the nonparticipating provider or facility or plan (as applicable) an amount that is three times the difference between—
(I)
the initial payment (or, in the case of a notice of denial of payment, $0) described in subsection (a)(1)(C)(iv)(I) or (b)(1)(C), as applicable; and
(II)
the out-of-network rate (as defined in subsection (a)(3)(K)) for such item or service (less any cost sharing required to be paid by the individual receiving such item or service).
(ii)
Interest
A late payment penalty under clause (i) shall also be subject to interest in a manner specified by the Secretary.
  .
(2)
Air ambulance services
 Section 9817(b)(6)  of the Internal Revenue Code of 1986 is amended—
(A)
in the paragraph heading, by inserting
; penalty for late payment or non-payment   after
payment  ;
(B)
by striking  The total plan  and inserting the following:
(A)
Timing of payment
The total plan
  ;
(C)
in subparagraph (A), as so inserted, by adding at the end the following new sentence:  In the case such determination is an amount less than the sum of the initial payment for such item or service and any cost sharing required to be paid by the individual receiving such item or service, the nonparticipating provider or facility furnishing such item or service shall pay to such plan the difference between such determination and such sum not later than 30 days after the date on which such determination is made. ; and
(D)
by adding at the end the following new subparagraphs:
(B)
Notification
In the case of a plan, or a nonparticipating provider or facility, required to make a payment pursuant to a determination described in subparagraph (A), such plan or nonparticipating provider or facility shall submit to the Secretary a notification of such payment as of the date such payment is made in a manner specified by the Secretary.
(C)
Penalty for late payment or non-payment
(i)
In general
In the case of a plan, or a nonparticipating provider or facility, that has not made the required payment described in subparagraph (A) with respect to an item or service in the time period described in such subparagraph, in addition to making such payment, such plan or nonparticipating provider or facility shall also pay to the nonparticipating provider or facility or plan (as applicable) an amount that is three times the difference between—
(I)
the initial payment (or, in the case of a notice of denial of payment, $0) described in subsection (a)(3)(A); and
(II)
the out-of-network rate (as defined in section 9816(a)(3)(K)) for such item or service (less any cost sharing required to be paid by the individual receiving such item or service).
(ii)
Interest
A late payment penalty under clause (i) shall also be subject to interest in a manner specified by the Secretary.
  .
4.
Transparency reporting requirements
(a)
PHSA
Section 2799A–1(a)(2)(A)(iii) of the Public Health Service Act ( 42 U.S.C. 300gg–111(a)(2)(A)(iii) ) is amended to read as follows:
(iii)
Reporting
(I)
Initial reporting
Beginning for 2022 and ending on December 31 of the calendar year in which the  No Surprises Act Enforcement Act  is enacted, the Secretary shall annually submit to Congress a report on the number of plans and issuers with respect to which audits were conducted during such year pursuant to this subparagraph.
(II)
Subsequent reporting
(aa)
In general
With respect to the first calendar year following the date of the enactment of the  No Surprises Act Enforcement Act , not later than February 1 of such year, and every 6 months thereafter, the Secretary, in coordination with the Secretary of Labor and the Secretary of the Treasury, shall submit to the Committee on Ways and Means, the Committee on Energy and Commerce, and the Committee on Education and the Workforce of the House of Representatives, and the Committee on Finance and the Committee on Health, Education, Labor and Pensions of the Senate, a report on any audits conducted pursuant to this subparagraph during the applicable reporting period, and any enforcement actions taken during such period in accordance with the provisions of this part, including—
(AA)
the total number of audits conducted under this subparagraph;
(BB)
the number of audits conducted pursuant to clause (ii)(I);
(CC)
the number of complaints submitted by providers and by participants, beneficiaries, and enrollees with respect to a violation of this part;
(DD)
any enforcement actions taken as a result of a complaint submitted by a provider or by a participant, a beneficiary, or an enrollee, with respect to the provisions of this part;
(EE)
the total number of, and the aggregate dollar amount of, any civil monetary penalties issued in accordance with this part;
(FF)
a summary of any non-monetary corrective action taken against a group health plan or health insurance issuer offering group or individual health insurance coverage for a violation of this part; and
(GG)
a description of the 3 most commonly reported violations of this part.
(bb)
Applicable reporting period
For purposes of this subclause, the term  applicable reporting period  means the 6 month period prior to each report submitted under item (aa).
  .
(b)
IRC
 Section 9816(a)(2)(A)(iii)  of the Internal Revenue Code of 1986 is amended to read as follows:
(iii)
Reporting
(I)
Initial reporting
Beginning for 2022 and ending on December 31 of the calendar year in which the  No Surprises Act Enforcement Act  is enacted, the Secretary shall annually submit to Congress a report on the number of plans with respect to which audits were conducted during such year pursuant to this subparagraph.
(II)
Subsequent reporting
(aa)
In general
With respect to the first calendar year following the date of the enactment of the  No Surprises Act Enforcement Act , not later than February 1 of such year, and every 6 months thereafter, the Secretary, in coordination with the Secretary of Labor and the Secretary of Health and Human Services, shall submit to the Committee on Ways and Means, the Committee on Energy and Commerce, and the Committee on Education and Workforce of the House of Representatives, and the Committee on Finance and the Committee on Health, Education, Labor and Pensions of the Senate, a report on audits performed pursuant to this subparagraph during the applicable reporting period, and any enforcement actions taken during such period in accordance with the provisions of an applicable section, including—
(AA)
the total number of audits conducted under this subparagraph;
(BB)
the number of audits conducted pursuant to clause (ii)(I);
(CC)
the number of complaints submitted by providers and by participants and beneficiaries with respect to a violation of an applicable section;
(DD)
any enforcement actions taken pursuant to a violation of an applicable section;
(EE)
the total number of, and the aggregate dollar amount of, any civil monetary penalties issued in accordance with an applicable section;
(FF)
a summary of any non-monetary corrective action taken against a group health plan for a violation of an applicable section; and
(GG)
a description of the 3 most commonly reported violations of an applicable section.
(bb)
Definitions
In this subclause:
(AA)
Applicable reporting period
The term  applicable reporting period  means the 6 month period prior to each report submitted under item (aa).
(BB)
Applicable section
The term  applicable section  means this section and each of sections 9817 through 9825.
  .