The resolution, introduced by Senator Hauck, urges the federal government to clarify that claims related to state surprise billing laws should be resolved through state dispute resolution processes rather than the federal independent dispute resolution (IDR) process. Michigan has established its own comprehensive surprise billing protections law, which includes an arbitration process for resolving payment disputes between nonparticipating providers and insurers. However, there has been a concerning trend where providers are increasingly utilizing the federal IDR process for claims that should fall under state jurisdiction, leading to higher payments for out-of-network services and potential inconsistencies in payment determinations.

The resolution highlights that a significant percentage of claims submitted through the federal IDR process have been deemed ineligible, indicating a lack of clarity regarding which claims should be processed federally versus at the state level. This situation not only undermines Michigan's established dispute resolution framework but also poses a risk of escalating insurance costs for consumers. The resolution calls for the federal government to provide guidance to ensure that state laws are upheld and that claims are processed appropriately, thereby protecting both patients and insurers from unnecessary financial burdens. Copies of the resolution will be sent to key federal officials and Michigan's congressional delegation.