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CMS finalizes changes to dispute resolution process

CMS finalizes changes to dispute resolution process

WASHINGTON – The Centers for Medicare & Medicaid Services (CMS) has published a final rule that it says makes the Federal Independent Dispute Resolution (IDR) process more efficient and transparent, while saving money for millions of Americans. Since launching in April 2022, CMA says the Federal IDR process has received more than 5 million disputes – far exceeding expectations and creating delays and unnecessary costs. The agency says the rule addresses those bottlenecks by reducing ineligible disputes and lowering costs for providers and payers. “Americans should never be blindsided by unexpected medical bills,” said HHS Secretary Robert F. Kennedy, Jr. “This rule cuts through bureaucratic delays, strengthens transparency between payers and providers, while continuing to protect patients from unnecessary financial stress. We are bringing greater clarity, accountability, and common sense to a healthcare system that too often leaves families confused and frustrated.” As finalized:

  • The rule drops the administrative fee from $115 to $15 per party per dispute – a reduction of more than 85%.
  • The rule also allows more flexibility for claims to be resolved together in one batched dispute, reducing costs while simultaneously speeding up decisions.
  • The rule lays the groundwork for a new IDR Gateway – a centralized platform to manage disputes – that will launch in phases beginning in 2026

To review the final rule, visit: https://www.cms.gov/files/document/federal-independent-dispute-resolution-operations-cms-9897-f.pdf.

To review the CMS fact sheet, visit: https://www.cms.gov/newsroom/fact-sheets/federal-independent-dispute-resolution-operations-final-rule.

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