IDR Knowledge Base

Withdrawals/Settlements

To withdraw a dispute, both parties must agree to the withdrawal. If a dispute is withdrawn and the opposing party disagrees, the entity must reopen the dispute. Disputes are requested to be withdrawn for a number of reasons, including:

• The initiating parties realize the submitted claims are not eligible, prior to the entity’s eligibility determination.
• A settlement was reached prior to arbitration.
  • If the withdrawal request is made after an arbitrator has already rendered a decision, it will not be granted.
• The initiating party made clerical errors on their initiation form.
• Other

 These requests need to be sent to the entity assigned to the dispute.

Refund Process for Withdrawals/ Settlements

If the parties negotiate an OON rate before a determination is made, or if both parties agree to withdraw the dispute, the certified IDR entity will return half of each party’s payment for the certified IDR entity fee within 30 business days following the date of settlement.* The [CMS] administrative fees are not refunded.

*Unless directed otherwise by both parties to distribute the total amount of the refund in different shares (see Section 5)

Source: Federal-IDR-Guidance-Disputing-Parties-March-2023.pdf

Determinations

Arbitrated Determination

A dispute is sent to the arbitrator to render a determination when the claims involved are eligible and payment and offers from each party have been received.

Not later than 30 business days after the selection of the certified IDR entity is finalized, the certified IDR entity must select one of the offers submitted by the disputing parties to be the OON rate for the qualified IDR item or service.
The certified IDR entity must select one of the offers submitted by the disputing parties. The certified IDR entity’s determination is legally binding unless there is fraud or evidence of intentional misrepresentation of material facts to the certified IDR entity by any party regarding the claim.

Source: Federal-IDR-Guidance-Disputing-Parties-March-2023.pdf

Defaulted Determination

• A default determination will be rendered if;
  • One party did not submit payment, this includes underpayments.
  • One party did not submit an offer.
  • One party did not submit both offer and payment.

6.1.6 Consequences of a Failure to Submit an Offer
If, by the deadline for the parties to submit offers, one party has not submitted an offer utilizing the Federal IDR portal and the Notice of Offer web form the certified IDR entity provided, the certified IDR entity will select the other party’s offer as the final payment amount. 

Each party must pay the certified IDR entity fee and the administrative fee when submitting its offer (unless the administrative fee has already been paid). If the certified IDR entity fee and administrative fee are not collected from a party, the certified IDR entity will not accept the non-paying party’s offer.

Source: Federal-IDR-Guidance-Disputing-Parties-March-2023.pdf

Administratively Closed

• A dispute is administratively closed when an entity determines a dispute to be eligible, requests payment and offer and;
  • Neither party submitted an offer.
  • Neither party submitted payment.

Refund Process for Determinations

Arbitrated Determination

The prevailing party is fully refunded their entity fee, and the non-prevailing parties fees are kept by the entity.

The non-prevailing party is ultimately responsible for the certified IDR entity fee, which is retained by the certified IDR entity for the services it performed. The certified IDR entity fee that was paid by the prevailing party will be returned to the prevailing party by the certified IDR entity within 30 business days of the certified IDR entity’s determination. 

Source: Federal-IDR-Guidance-Disputing-Parties-March-2023.pdf

Defaulted Determination

The prevailing party is fully refunded their entity fee, and the non-prevailing parties fees are kept by the entity.

The non-prevailing party is ultimately responsible for the certified IDR entity fee, which is retained by the certified IDR entity for the services it performed. The certified IDR entity fee that was paid by the prevailing party will be returned to the prevailing party by the certified IDR entity within 30 business days of the certified IDR entity’s determination. 

Source: Federal-IDR-Guidance-Disputing-Parties-March-2023.pdf

Administratively Closed

Since there is no prevailing party, FHAS keeps half of any entity fees paid (similar to a withdrawal).