The Senate Resolution urges the federal government to provide clear guidance indicating 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 a comprehensive surprise billing protection law that predates the federal No Surprises Act (NSA) and includes a structured 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 be handled under Michigan's state law, leading to inconsistencies and potential financial burdens on insurers and consumers.

Recent data shows that a significant percentage of arbitration decisions under the federal process have favored providers, resulting in higher payments than those typically received by in-network providers. This trend has raised alarms among health plans in Michigan, as many ineligible claims are being submitted to the federal IDR process, undermining the state's established protections. The resolution calls for the federal government to clarify the appropriate channels for these claims to ensure that state laws are upheld and to prevent unnecessary costs that could ultimately affect consumers' insurance premiums. Copies of the resolution will be sent to key federal officials and Michigan's congressional delegation.