CMS Reports Surge in No Surprises Act Disputes, Highlighting Rising Arbitration Cases
The Centers for Medicare & Medicaid Services (CMS) has released new data indicating a significant increase in out-of-network billing disputes proceeding to arbitration under the No Surprises Act. In the latter half of 2025, nearly 1.4 million disputes were initiated, compared to 1.2 million in the first half of the year. This rise in disputes has been met with criticism from health insurers, who argue that the independent dispute resolution (IDR) process is being overwhelmed, leading to increased payments to providers. In 2025, providers received approximately $15 billion in IDR payouts, a substantial increase from $4.1 billion in 2024. The CMS data also reveals that payments determined through IDR are often higher than the qualifying payment amounts proposed by insurers. A small number of organizations are responsible for a large portion of these disputes, with companies like HaloMD and TeamHealth leading in the number of initiated disputes.