Alerts6.23.25
Fifth Circuit Rules No Private Right of Action Under No Surprises Act
Highlights
- The Fifth Circuit Court of Appeals issued an opinion concluding the No Surprises Act does not give providers a private right of action to enforce and recover from dispute resolution rewards.
- The Court held that unlike the Federal Arbitration Act, the No Surprises Act lacks language authorizing judicial enforcement of IDR decisions, so plaintiffs cannot sue under it.
- The decision comes as federal district courts remain divided on the issue, adding to the ongoing uncertainty surrounding the implementation of the No Surprises Act.
- This decision emphasizes the importance of strategic contract drafting, which may provide independent private causes of action.
In a significant ruling for healthcare providers, the Fifth Circuit Court of Appeals held that two air ambulatory service providers cannot sue to enforce payment of Independent Dispute Resolution (IDR) awards issued under the No Surprises Act. In its June 13 ruling, the Court affirmed the Texas District Court’s previous dismissal, finding that the No Surprises Act does not contain a private right of action allowing providers to enforce such awards directly in federal court.
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