After an accident or medical emergency, the last thing you expect is another bill demanding thousands of dollars beyond what your health insurance already paid. Yet, many South Carolinians open an unexpected bill and see charges labeled out-of-network, out-of-network coinsurance, or patient responsibility.
If you are facing balance billing, you are not alone. At Joye Law Firm Injury Lawyers, we stand with injured South Carolinians who feel outmatched by big insurance companies and complex billing systems. Since 1968, our mission has been to help injured underdogs level the playing field. We approach every case with compassion, courage, and a drive to keep improving how we serve our clients. We also have a deeply held respect for the common good, which is evidenced by our Joye in the Community program, funding programs across South Carolina.
This guide explains how balance billing occurs, your rights under the federal No Surprises Act, and the steps you can take to fight balance billing in South Carolina. It also explains how balance billing protections connect to personal injury and workers’ compensation claims.
What Is Balance Billing and When Does It Happen in South Carolina?
Balance billing occurs when a healthcare provider bills you for the difference between what your health plan pays and the provider’s full charge.
Here is a simple example. You receive emergency care at an in-network hospital. An out-of-network provider, such as a radiologist, reads your scans. Your health insurance pays part of the bill at the in-network rate. The provider then sends you a separate bill for the remaining amount. That extra amount is called out-of-network charges. That is balance billing.
Surprise billing occurs in situations such as:
- Emergency services at an out-of-network facility or from an out-of-network provider
- Certain non-emergency services at an in-network hospital, including radiology or laboratory services, and other ancillary services
In the past, patients had little protection. Today, federal law limits balance billing in many of these situations. South Carolina patients covered by an individual health insurance plan, group health plan, or many employer-sponsored insurance plans now have federal billing protections.
Understanding where your care took place and the network status of each provider or facility is the first step in fighting an unexpected medical bill.
What Protections Does the Federal No Surprises Act Give South Carolina Patients?
The federal No Surprises Act, sometimes called the surprise billing law or Surprises Act, took effect in 2022. It applies to most private health insurance and many group health plan arrangements regulated by the federal government.
Under the federal No Surprises Act:
- For most emergency services, you cannot be balance billed beyond your in-network cost sharing, even if you receive emergency treatment at an out-of-network facility.
- For certain non-emergency services at an in-network hospital or ambulatory surgical center, out-of-network providers generally cannot send you a balance bill for out-of-network billing.
This means your cost-sharing should be based on the in-network rate, not inflated out-of-network coinsurance. The insurance company and the provider must use a federal process known as the independent dispute resolution process to settle payment disputes. You should not be caught in the middle. These balance billing protections also cover post-stabilization services that follow emergency care, unless very specific notice and consent rules are met.
However, the law does not apply to every situation. Some types of coverage, such as certain short-term insurance plans, may not offer the same protections. Programs such as Medicaid, Veterans Affairs health care, and Indian Health Services follow different rules.
Still, for many South Carolinians with private health coverage, the Surprise Billing Act provides strong protections against surprise billing.
Understanding Your Health Insurance Policy
Navigating the complexities of your health insurance policy can seem daunting. However, understanding key components is essential to avoiding unexpected medical bills. In this section, we will guide you through some policy basics:
In-Network vs. Out-of-Network Providers
Provider networks consist of doctors, pharmacies, and facilities that contract with insurance companies. In-network providers have agreed to provide services to members at a negotiated rate. Visiting in-network providers generally means lower out-of-pocket costs for you, as your insurance covers a larger portion of the costs.
Out-of-network providers have not agreed to the negotiated rates with your insurance company. Seeking services from out-of-network providers can result in higher out-of-pocket expenses. Insurance plans typically cover a smaller percentage of costs for out-of-network providers, if any.
Deductibles
Your deductible is the amount you must pay out-of-pocket for healthcare services before your health insurance begins to pay. For example, if your deductible is $1,000, your health insurance plan won’t pay anything toward some services until after you’ve already paid $1,000 out-of-pocket. Understanding your deductible is crucial for planning your healthcare expenses and what you may be responsible for.
Copays
Copays are fixed amounts you pay for a covered healthcare service. The amount can vary by the type of service. For instance, visiting a primary care physician may have a $20 copay, while emergency room visits could have a $100 copay. Copays generally do not count towards your deductible, but do count towards your maximum out-of-pocket costs.
Balance Billing
Balance billing occurs when a healthcare provider bills you for the difference between their charge and the allowed amount by your health plan. This is especially common with out-of-network providers. For instance, if the provider charges $1,500 for a service but your insurance only covers up to $1,000, you might be billed for the remaining $500.