Federal Legislation Introduced to Spare Physicians from Electronic Payment Fees!

January 5, 2023

Payers routinely charge fees as a condition of electronic funds transfers

When you make an electronic payment, payers often charge a percentage-based electronic funds transfer (EFT) fee. But this practice may soon change.

A bill recently introduced in Congress – the No Fees for EFTs Act (HR 6487) – would prohibit health insurers from imposing such fees, which, as you know, can be as high as 5%!

Dinging doctors with this fee evolved during the transition from paper checks to electronic payments, which initiated in the early 2000s. And the move to EFTs resulted in health insurance companies saving money. Yet, these payers still want to charge doctors for the fees.

According to a 2021 MGMA Stat poll, nearly 60% of medical group respondents reported that payers were charging EFT fees that had never been agreed to by the medical groups. ISMS previously joined a sign-on letter communicating “Physicians are left with no option but to ‘pay to get paid.’”

It is time to end this unfair health insurer practice. ISMS will keep you informed of any developments in Washington concerning this legislation.

Questions? Please contact the ISMS Health Policy Research and Advocacy team by email.