The Departments of Health and Human Services, Labor, and the Treasury (the “Departments”) issued a Memorandum in response to the recent decision of a Texas court invalidating certain portions of the independent dispute resolution (IDR) rule promulgated by the Departments under the No Surprises Act (NSA).
NSA’s IDR Process in a Nutshell
The Texas Challenge
Providers in Texas challenged the presumption that the QPA should be the baseline for IDR decisions, and the court agreed with their arguments. It vacated five specified sections of the IDR rule that would have accorded more weight to the QPA in the IDR process. It did not invalidate any other section of the rule.
The Memorandum issued by the Departments acknowledges the impact of the court’s decision on the IDR rule. It states that the Departments are immediately withdrawing and updating guidance documents that rely on the portions of the rule invalidated by the court.
The Departments noted that they are considering additional steps. Presumably, these include an appeal of the Texas court’s decisions. It is worth noting that several similar challenges are pending in courts in other areas of the country, indicating a possibility of conflicting results (and eventually a possible appeal the Supreme Court).
