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September 01, 2023

Texas Judge Vacates Additional Portions of the No Surprises Act Regulations

On August 24, 2023, a Texas district court issued a decision vacating portions of the federal regulations implementing the independent dispute resolution (IDR) process under the No Surprises Act (NSA). The vacated regulations and related guidance included the rules for calculating qualifying payment amounts under the NSA's IDR process.  This decision is in addition to other litigation that includes the August 3, 2023, Texas district court decision striking down the rules increasing the administrative fee for participating in the arbitration process and prohibiting batching of related claims for resolution under that process. 

CMS states on its No Surprises Act website

On August 24, 2023, the U.S. District Court for the Eastern District of Texas issued an opinion and order in Texas Medical Association, et al. v. United States Department of Health and Human Services, Case No. 6:22-cv-450-JDK (TMA III), vacating certain portions of 86 Fed. Reg. 36,872, 45 C.F.R. § 149.130 and 149.140 , 26 C.F.R. § 54.9816-6T and 54.9817-1T, 29 C.F.R. § 2590.716-6 and 2590.717-1, and 5 C.F.R. § 890.114(a) as well as certain portions of several guidance documents. As a result of the TMA III decision, effective immediately, the Departments have temporarily suspended all Federal IDR process operations until the Departments can provide additional instructions. Disputing parties should continue to engage in open negotiation.

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