The Idaho Senate approved legislation aimed at curbing what Blue Cross of Idaho calls excessive reimbursement rates from Nutex Health, a micro-hospital company seeking to expand in Meridian. The bill, which passed 24-11, would require freestanding emergency rooms to be reimbursed at local market rates and disclose if they don't accept Medicare, Medicaid, or Tricare.

Blue Cross testified that Nutex sends all claims from its Post Falls hospital through arbitration, an unusual practice in Idaho where the insurer contracts with every other emergency room in the state. The company's CEO, Dr. Tom Vo, defended the practice, saying Nutex only pursues arbitration because Blue Cross won't pay fair rates. Blue Cross claims Nutex's out-of-network charges are five to eight times higher than in-network rates for similar services.

Sen. Treg Bernt cited specific examples during debate: a urinary tract infection costing $521 at market rate but $3,187 at Nutex's facility, and an abdominal CT scan priced at $586 versus $11,718. The legislation now moves to the House, where it faces further debate over whether government intervention is appropriate in what some lawmakers argue should be a free market dispute.