July 23, 2025
Mr. Murphy (for himself, Mr. Panetta, Mr. Joyce of Pennsylvania, Ms. Schrier, Mr. Onder, and Mr. Ruiz) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Education and Workforce, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
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 and health insurance issuers for practices that violate balance billing requirements, and for other purposes.
Section 1. Short title
This Act may be cited as the No Surprises Act Enforcement Act
.
Sec. 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 for each failure)
after $100 for each day
; 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 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 for each failure)
after $100 for each day in the noncompliance period
; 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).
Sec. 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
Any amount owed under clause (i) shall 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
Any amount owed under clause (i) shall 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
Any amount owed under clause (i) shall 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
Any amount owed under clause (i) shall 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
Any amount owed under clause (i) shall 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
Any amount owed under clause (i) shall be subject to interest in a manner specified by the Secretary.
Sec. 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 Enhanced Enforcement of Health Coverage 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 Enhanced Enforcement of Health Coverage 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 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 periodmeans 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 Enhanced Enforcement of Health Coverage 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 Enhanced Enforcement of Health Coverage 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 periodmeans the 6 month period prior to each report submitted under item (aa).(BB) Applicable section
The term
applicable sectionmeans this section and each of sections 9817 through 9825.