Congressman introduces bipartisan bill to ban electronic fund transfer fees paid by physicians

Rep. Greg Murphy, MD, R-N.C., has introduced bipartisan legislation to ban fees physicians and hospitals must pay for electronic fund transfers.

Under the Affordable Care Act, health insurers must offer medical practices the option to receive reimbursements electronically. However, many impose charges between 2% to 5% on providers who prefer to use such EFTs. Over 75% of revenues for member practices with the Medical Group Management Association come from such transfers, costing some upward of $1 million annually.

“Fees associated with electronic transactions for physician services are an unnecessary and costly burden on providers and patients,” Murphy, a practicing surgeon, said in a Nov. 28 announcement.  “Greedy health insurers attempt to scalp doctors and patients every step of the way throughout the care process to line their pockets. We don't tolerate paying fees to receive direct deposit of a paycheck; likewise, doctors and patients should not be forced to pay predatory fees on electronic payments on essential health services.”

Others co-sponsoring the No Fees for EFTs Act include Reps. Morgan Griffith, R-Va., Mariannette Miller-Meeks, MD, R-Iowa, Derek Kilmer, D-Wash., Ami Bera, MD, D-Calif., and Kim Schrier, MD, D-Wash. The bill is also endorsed by several industry trade groups, among them, the MGMA, American Medical Association, and the American Hospital Association.

“Insurers have slashed reimbursement rates, foisted prior authorization requirements on physicians, and created narrow networks. But requiring physicians to pay fees to get paid? This bill would give much needed relief to physician practices and score a victory for common sense,” AMA President Jesse M. Ehrenfeld, MD, said in the same announcement.