A Good Faith Estimate (GFE) is a cost estimate provided to uninsured or self-pay patients before receiving medical services, helping them understand expected healthcare expenses. It is a requirement under the No Surprises Act, which took effect on January 1, 2022, to promote transparency in medical billing and prevent unexpected charges.
Healthcare providers and facilities must give patients a written Good Faith Estimate outlining the anticipated costs of medical procedures, treatments, or services.
This estimate includes details such as the type of service, the expected cost, and any associated fees, such as lab tests or facility charges. It must be provided at least one business day before a scheduled service (or earlier for complex procedures).
If the final bill exceeds the Good Faith Estimate by $400 or more, patients have the right to dispute the charges through an independent resolution process. This law ensures that patients can make informed financial decisions about their healthcare and avoid surprise medical bills.
By requiring clear and upfront cost estimates, the Good Faith Estimate helps patients plan for medical expenses, compare prices, and prevent unexpected financial burdens while receiving necessary medical care.