Court rules as unlawful the arbitration process of No Surprises Act final rule

Healthcare Finance News February 7, 2023
Susan Morse

Portions of the final rule must be set aside, the federal court has ruled.

A federal court has vacated provisions of a final rule regarding the arbitration process under the No Surprises Act and remanded it back for further consideration.

On Monday, U.S. District Court Judge Jeremy Kernodle sided with the Texas Medical Association’s argument that the final rule unlawfully conflicts with the NSA in restricting arbitrators’ discretion and unlawfully tilting the arbitration process in favor of the Qualifying Payment Amount set by insurers.

The court concluded that the challenged portions of the final rule are unlawful and must be set aside under the Administrative Procedure Act.

WHY THIS MATTERS

The Texas Medical Association has challenged portions of a...