On April 23, 2024, and Dec. 13, 2024, the Centers for Medicare and Medicaid Services (CMS) provided status updates on the progress it is making toward implementation of the advanced explanation of benefits (AEOB) transparency provision of the Consolidated Appropriations Act (CAA). While the AEOB requirement was originally effective in 2022, federal agencies delayed the requirement for plans and issuers to provide AEOBs until implementation rules could be issued. 

Background 

To help avoid surprise medical bills, the CAA requires health plans and issuers, upon receiving a “good faith estimate” (GFE) from a provider or facility, to send participants, beneficiaries or enrollees an AEOB notification. As the first stage of implementation, regulations were issued in 2021 on GFEs for uninsured (or self-pay) individuals, and those provisions are currently in effect. However, federal agencies recognized (in FAQ guidance) the complexities of developing the technical infrastructure to transmit these estimates from providers and facilities to plans and issuers. Accordingly, the enforcement of this requirement was delayed pending future rulemaking. 

CMS Progress 

As stated in its April 2024 status update, CMS is working with agencies across multiple federal agencies to implement the good faith estimate and AEOB requirements in stages. According to CMS, using this approach will allow the Departments and the OPM to better ensure each stage is informed by thorough research and collaboration and is supported by appropriate technical standards for data sharing between providers and payers. Neither the April nor the December 2024 status updates provide a specific timeline for implementation. 

CMS Research 

In addition to soliciting feedback through requests for information, CMS conducted a study into the health care industry’s business and technology needs as well as the capabilities of providers and payers. Based on this study, researchers recommended a single data exchange standard for the receipt of GFEs by payers and the transmission of AEOBs from payers to providers. 

In its December 2024 status update, CMS outlined three options that have potential for providers to transmit GFE information. CMS also stated it is considering whether there are hybrid approaches to use or allow for different standards that would maximize innovation pathways. 

Action Steps 

At this time, plans and issuers do not need to provide AEOBs and should continue to monitor for regulatory guidance, including timelines for implementation and any new standards for transmission of AEOBs that may apply. CMS provides a regulations and guidance webpage that summarizes all of the latest developments.