How it works · No Surprises Act

How No Surprises Act IDR actually works.

The federal Independent Dispute Resolution process decides out-of-network payment when a plan and a provider can't agree. Here's the two-stage path, the six factors an arbitrator weighs, what they're forbidden to consider, and the deadlines that quietly decide most cases.

The two stages

Open negotiation first — then arbitration.

The cheapest win comes before the arbiter. Most disputes should never reach IDR.

STAGE 1 · SETTLE HERE

Open negotiation

A 30-business-day, party-to-party window with no arbiter and no fee. Reach a number here and you skip the IDR fees and the coin-flip entirely. A QPA-anchored counteroffer is usually enough, because escalating to IDR costs the provider too.

STAGE 2 · AVOID IF YOU CAN

Federal IDR

Baseball-style arbitration: each side submits one number, and a certified IDR entity picks one — no splitting the difference. There's an administrative fee per party and the certified-IDRE fee. The offer that's defensible on the six factors wins.

The anchor

What the QPA is.

The Qualifying Payment Amount (QPA) is the plan's median contracted rate for the same or a similar item or service in the geographic region, generally set from 2019 rates and indexed forward by the Consumer Price Index. It is the statutory anchor the arbitrator must consider in every case — and, critically, it is a contracted rate, not a billed charge. A defensible offer starts here.

The determination

The six things an arbitrator weighs.

Set by statute (42 U.S.C. § 300gg-111(c)(5)(C)) — the QPA plus five additional considerations.

FACTOR 1 · THE ANCHOR

The Qualifying Payment Amount

The plan's median contracted rate for the service in the region. Considered in every case; the starting reference for a defensible number.

FACTOR 2

Training, experience & outcomes

The provider's or facility's level of training, experience, and quality and outcomes measurements for the item or service in dispute.

FACTOR 3

Market share

The market share held by the out-of-network provider/facility, or by the plan, in the geographic region.

FACTOR 4

Acuity & complexity

The acuity of the patient, or the complexity of furnishing the item or service.

FACTOR 5

Facility profile

The teaching status, case mix, and scope of services of the facility — for facility disputes.

FACTOR 6

Good-faith efforts & prior rates

Demonstrations of good-faith efforts (or their absence) to reach a network agreement, and any contracted rates between the parties over the previous four plan years.

What the arbitrator may NOT consider

The provider's billed or usual-and-customary charges, the amount that would have been billed absent the No Surprises Act, and public-payer rates (Medicare, Medicaid, CHIP, TRICARE). That's exactly why an inflated demand doesn't help a provider — and why a QPA-anchored, contracted-rate offer wins.

The clock

The deadlines that decide cases.

Most default losses aren't lost on the merits — they're lost on a missed window.

30
business-day open-negotiation period before either party can initiate IDR.
5
business-day windows for eligibility determination and additional information. Miss one and you forfeit.
$15
administrative fee per party, per dispute — every case has to clear that floor to be worth filing.
50
line-item cap on a single batched determination, with cross-specialty batching allowed.

See where your book stands against the six factors.

Avertyn scores eligibility, defends the QPA, and builds the offer an arbitrator can defensibly pick — filed on time, every time.

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