Important Win on Legal Challenge to the No Surprises Act

March 4, 2022

ISMS joined with other allies to successfully submit an amicus brief in support of a lawsuit initiated by the American Medical Association (AMA) and American Hospital Association (AHA). The case involves a challenge to the rules enacting the federal No Surprises Act.

This is one of several cases challenging the implementation of regulations under the law. We are pleased to announce that our side has won a round in the courts! While we are still waiting for an update to the AMA challenge, a federal court in Texas ruled against the federal government in a case filed by our colleagues at the Texas Medical Association.

These cases are challenging provisions of the Act’s rule concerning out-of-network payments, arguing that the federal regulators’ implementation rules upend the careful compromise Congress deliberately put in place for resolving billing disputes.

The Texas trial judge vacated provisions of the rules in question and determined that:

• The federal government failed to follow the federal Administrative Procedure Act;
• The rules in question conflict with the unambiguous terms of the Act; and
• The federal government improperly bypassed notice and comment in implementing the challenged portions of the rule. 

ISMS will keep you updated on any new developments as these cases progress.

If you have questions, please contact ISMS' Legal Division by email.