Washington, D.C. — Congressman Murphy introduced the No Fees for EFTs Act, bipartisan legislation to protect health care providers and patients from unnecessary fees associated with electronic fund transfers and payment transactions. 

"Fees associated with electronic transactions for physician services are an unnecessary and costly burden on providers and patients," said Congressman Greg Murphy, M.D. "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." 

"Our doctors and hospitals in small and rural areas are already struggling to provide timely care without having to factor in the even greater administrative burdens and fees brought on by electronic fund transfers, or EFTs, and payment transactions," said Congresswoman Marianette Miller-Meeks, M.D. "As a doctor, I know how important it is to prioritize patient care. I also understand how the debilitating EFT fees, tacked on by an outdated Affordable Care Act provision, can shutter a practice, by mounting practice cost expenses, especially in a time of high inflation, when reimbursement does not keep pace. Our bill, the No Fees for EFTs Act, addresses the deceptive business practices of EFTs and protects a doctor's ability to provide quality patient care." 

"Healthcare plans forcing doctors to pay a fee to be paid for their services creates yet another hurdle in the healthcare system and prevents physicians from getting the compensation they deserve," said Congresswoman Kim Schrier, M.D. "I am proud to continue to be a voice for physicians in the House by introducing this bipartisan legislation in hopes of prohibiting these excessive fees impacting our medical providers at a time when we are experiencing severe doctor shortages nationwide." 

"As we work towards a more efficient and fair health care system, the ‘No Fees for EFTs Act’ represents a crucial step forward," said Congressman Derek Kilmer. "It’s unacceptable that health care providers are burdened with unnecessary fees for simply receiving payments electronically. These costs not only hinder our medical professionals financially but also divert critical resources away from patient care. This bipartisan effort underscores our commitment to eliminating predatory practices in our health care system and ensuring that every dollar is directed towards improving patient outcomes." 

"Medical Group Management Association thanks Representatives Murphy, Kilmer, Griffith, Bera, Miller-Meeks, and Schrier for their leadership in introducing the No Fees for EFTs Act. MGMA has long called for a prohibition on the practice of health plans and their payment processing vendors charging medical groups rapacious fees for receiving reimbursement via the Electronic Funds Transfer (EFT) method. Medical practices often find themselves charged a percentage (typically 2-5%) per EFT transaction simply to get paid — proving especially detrimental for the majority of groups who receive over 75% of their annual revenue through EFT. If passed, this critical legislation would clarify in plain language that plans and their vendors are prohibited from imposing fees for EFT payment, helping to protect the financial viability of medical practices and their ability to provide cost-effective care." 

"The American Medical Association applauds Reps. Greg Murphy, M.D. (R-NC), Morgan Griffith, (R-VA), Mariannette Miller-Meeks, M.D. (R-IA), Derek Kilmer, (D-WA), Ami Bera, M.D. (D-CA), and Kim Schrier, M.D. (D-WA) for looking out for patients and their access to care," AMA President Jesse M. Ehrenfeld, M.D., MPH. "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." 

Background

Under the Affordable Care Act, health plans are required to offer medical practices the option to receive reimbursements electronically. Insurers impose charges between 2-5% on health care providers for electronic fund transfers (EFTs) According to the Medical Group Management Association, over 75% of their practices's annual revenue is via EFTs and can cost up to $1,000,000 annually.