Federal IDR Initiation Fee of $150 Proposed for 2024
This week, the Departments of Health and Human Services (HHS), Labor, and the Treasury proposed a rule setting forth the fee for the federal Independent Dispute Resolution (IDR) process at $150 per party for CY 2024 – compared to $50 in CY 2022, and a proposed level of $350 in CY 2023, which was the subject of a District Court order.
The No Surprises Act established a federal IDR process for insurers and nonparticipating physicians and facilities to resolve certain disputes regarding out-of-network rates, and provided that parties to a determination under the IDR process will pay a fee to the federal government for participation. In December 2022, the Departments increased the federal IDR process fee from $50 to $350 for CY 2023. Following a further lawsuit initiated by the Texas Medical Association, on August 3, 2023, the Texas District Court issued a memorandum opinion and order that vacated the portion of the December 2022 guidance that increased the administrative fee for the Federal IDR process to $350 per party for CY 2023.
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