Anthem alleged that HaloMD had exploited the resolution process to submit ineligible claims and secure higher out-of-network payment awards.

Administrative waste costs the U.S. health care system an estimated $350 billion each year. This includes $266 billion that is attributed to administrative complexity and between $59 and $84 billion caused by fraud and abuse.

The proposed pay increase "is a step in the right direction, but it does not negate the compounding effects of rising inflation, record levels of uncompensated care and a growing uninsured population," Charlene MacDonald, president and CEO of the Federation of American Hospitals, said in a statement.

Democratic Gov. Abigail Spanberger signed a bill this week that sets new rules for how insurance carriers must handle prior authorizations for both drugs and certain health care services.

"The first quarter's $14.5 billion in transacted revenue was the highest Q1 figure we have seen in recent years," the report said.

This is only the latest disagreement involving the independent dispute resolution process since it took effect more than three years ago.

Nineteen states and the District of Columbia allege that the restructuring violates the Administrative Procedure Act and the Constitution because the agency has no authority to restructure itself and fire its employees.

Two-thirds of adults say they are concerned that immigration enforcement activities in or around health care facilities may discourage some people from seeking needed medical care.