Lexology February 27, 2023
On February 6, the U.S. District Court for the Eastern District of Texas struck down key regulations implementing the federal arbitration process created under the No Surprises Act (NSA) to settle out-of-network payment disputes between payers and providers, referred to as the independent dispute resolution (IDR) process. The regulations required arbitrators to first consider the payer’s median in-network rate when assessing each party’s offer and only then consider additional information submitted by providers. Providers argued these regulations would tilt the IDR process in favor of payers.
The court sent the regulations back to the government for further consideration and suggested that, in the meantime, arbitrators could decide disputes based on the language in the NSA, which directs arbitrators to consider...
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