Health Care Providers Fight Arbitration Rule in No Surprises Act

On February 23, a district court in Texas invalidated key parts of a federal rule to implement the No Surprises Act, a new law with broad bipartisan support that protects patients from many types of surprise medical bills. The lawsuit is led by the Texas Medical Association and is one of several legal challenges brought by health care providers. The court’s ruling does not disturb the No Surprises Act’s core protections for patients but eliminates key guardrails — aimed to help keep down health care costs — on the arbitration process used to negotiate between providers and patients.

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