Davis Wright Tremaine·HEALTHCARE

Fee Cut, Favorable Data Boost No Surprises Act Arbitration for Providers

A recent analysis showing providers win 85% of payment disputes, coupled with a sharp drop in filing fees, encourages broader use of the federal IDR process for underpaid out-of-network claims.

Healthcare providers are seeing high success rates in the No Surprises Act's Independent Dispute Resolution (IDR) process for out-of-network billing, creating new recovery opportunities. A 2025 analysis by Georgetown University found that providers prevailed in approximately 85% of all disputes, with median awards often representing significant multiples of the Qualifying Payment Amount (QPA), a benchmark based on median in-network rates. For sophisticated counsel, the key development is a recent and dramatic change in the cost-benefit analysis for pursuing these claims. In June 2026, the administrative fee to initiate an IDR dispute was reduced from $115 to $15 per party. This fee reduction, along with expanded rules for "batching" similar claims together, makes arbitration a more viable option for smaller underpayments that were previously cost-prohibitive to challenge. Providers should now reassess recurring underpayment patterns and individual claims to determine whether a revised IDR strategy could improve recovery efforts and reduce ongoing revenue loss from disputed payor reimbursements.

no-surprises-actindependent-dispute-resolutionhealthcare-providersout-of-networkbilling-disputesarbitration
Read the original firm alert → Saturday, September 19, 2026

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