HEALTH & LIFE SCIENCES NEWS
HEALTH & LIFE SCIENCES NEWS
Exploring Critical Business and Legal Issues across the Healthcare and Life Sciences Industries
HEALTH & LIFE SCIENCES NEWS
Exploring Critical Business and Legal Issues across the Healthcare and Life Sciences Industries

Departments Release Update on No Surprises Act Independent Dispute Resolution Process

By and on April 28, 2023

On April 27, 2023, The Departments of Health and Human Services (HHS), Labor, and the Treasury (the Departments) released a status update on the Federal Independent Dispute Resolution (IDR) Process, which covers the period from April 15, 2022 through March 31, 2023, as well as the initial report on the fourth quarter of 2022. Below are some of the key statistics shared.

Status Update

  1. Between April 15, 2022 and March 31, 2023, 334,828 disputes were initiated through the Federal IDR portal. This caseload is 14 times greater than what the Departments initially anticipated.
    • Non-initiating parties challenged the eligibility of 122,781 of the disputes and nearly 40,000 were deemed ineligible and closed.
  2. IDR entities have rendered payment determinations in 42,158 disputes to date.
  3. Initiating parties have been the prevailing party in ~71% of the disputes.

Fourth Quarter Report

  1. During Q4 2022, disputing parties initiated 110,034 disputes through the Federal IDR process. This represented a 53% increase over Q3.
  2. IDR entities made over three times more payment determinations in Q4 compared to Q3. IDR entities also closed fewer disputes as ineligible during Q4. Non-initiating parties challenged 40% of the disputes initiated.
  3. Over two-thirds of the disputes submitted to the Federal IDR portal involved items or services furnished in bifurcated states (i.e., states where some items/services may be subject to a specified state law or All-Payer Model Agreement).
  4. The report includes a summary of the Top 10 Initiating and Non-Initiating Parties.
  5. HHS spent $6,646,820 in Q4 to implement and carry out the Federal IDR process; it collected $637,350 in administrative fees.

Visit our No Surprises Act Resource Center for more McDermott insights on the NSA.

Brian Stimson
Brian Stimson is the former Acting General Counsel and Principal Deputy General Counsel (second-ranking lawyer) for the US Department of Health and Human Services (HHS) in Washington, DC. He represents health clients in litigations, arbitrations and government investigations nationwide. As part of his practice, Brian counsels clients on how to navigate disputes that present overlapping legal, regulatory, public policy and business considerations. His collaborative and pragmatic approach draws on his work as a high-level HHS official and a litigator. Learn more about Brian's practice: https://www.mwe.com/people/stimson-brian/


Emily Curran
Emily R. Curran focuses her practice on healthcare regulatory and compliance issues in the managed care space. She counsels both for-profit and non-profit healthcare insurance companies on state and federal policy issues and advises clients on reimbursement issues that come into play when participating in government healthcare programs. Learn more about Emily's practice: https://www.mwe.com/people/emily-r-curran/

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