Texas ‘Surprise’ Hospital Bill Ban Points to Capitol Hill Clash

A new Texas law that settles hospital payment disputes through arbitration so far favors physicians over health insurers, and illustrates why efforts to pass a federal ban on surprise medical bills have hit a roadblock on Capitol Hill.

The Lone Star State’s surprise billing law (SB 1264) that took effect in January has been a success by some measures, resulting in a 95% drop in consumer complaints about surprise bills and a 70% drop in provider complaints.

But insurers are paying the price. A provision in the law similar to those in New York and New Jersey instructs ...