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Texas District Court Vacates Portions of No Surprises Act Rule Related to Arbitration

By Ellee Cochran, Craig Kovarik, Tracey O'Brien, Noreen Vergara & Mark Waterbury on February 24, 2022
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No surprises legal alert

On February 23, 2022, Judge Jeremy Kernodle of the Eastern District of Texas ruled that certain parts of the Interim Final Rule Part II (the Rule) implementing the No Surprises Act are invalid. Specifically, the provisions of the Rule governing the methodology for how arbitrators determine the amount of payments insurers and self-funded health plans will make to nonparticipating (also known as out-of-network) providers for certain services. This ruling has general applicability and applies to plans and providers throughout the country. Read more about the ruling: https://bit.ly/3LZoHZB

Photo of Ellee Cochran Ellee Cochran

Ellee focuses her practice on healthcare regulatory law. Ellee has had experience representing hospitals, physicians and managed care companies with day-to-day compliance with various state and federal regulations.

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Photo of Craig Kovarik Craig Kovarik

Craig is member of the Firm’s Employee Benefits & Executive Compensation team (and a former Certified Public Accountant) who has spent his entire legal career helping clients navigate complex ERISA, tax and related laws pertaining to employer-sponsored benefit plans and compensatory arrangements.

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Photo of Tracey O'Brien Tracey O'Brien

Tracey focuses on assisting federal contractors, including healthcare, life sciences and education clients, in compliance with employment laws and regulations. She is the co-lead of the firm’s OFCCP Compliance team and a member of the firm’s Labor & Employment practice group. Tracey is

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Tracey focuses on assisting federal contractors, including healthcare, life sciences and education clients, in compliance with employment laws and regulations. She is the co-lead of the firm’s OFCCP Compliance team and a member of the firm’s Labor & Employment practice group. Tracey is an experienced trial lawyer, defending clients against claims of discrimination, harassment, and retaliation and other related claims before administrative agencies and state and federal courts.

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Photo of Noreen Vergara Noreen Vergara

As a Healthcare Regulatory Attorney and former executive, Noreen is a transparent communicator and innovative problem solver with a deep background in operations and risk management.

Noreen’s career in healthcare operations, healthcare compliance and executive leadership began as a behavioral health admissions representative

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As a Healthcare Regulatory Attorney and former executive, Noreen is a transparent communicator and innovative problem solver with a deep background in operations and risk management.

Noreen’s career in healthcare operations, healthcare compliance and executive leadership began as a behavioral health admissions representative – she understands the day-to-day regulatory hurdles facing healthcare clients. Most recently, Noreen served as Acting CEO, General Counsel and Chief Human Resources Executive for a national managed behavioral health venture with employees across 50 states. In this position, Noreen leveraged her experience in strategic planning, corporate governance, complex contracts, employment law and compliance. Noreen navigated tough decisions including guiding 500 percent growth over 6 years, moving online quickly during COVID-19 and helping secure the largest contract in company history. Earlier in her career, Noreen collaborated in-house at the National Association of Insurance Commissioners (NAIC), where oversight, peer review, best practices and standards are established by state regulators.

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Photo of Mark Waterbury Mark Waterbury

Mark combines deep in-house experience with a government background in public health to advise clients on their most pressing and sensitive concerns.

Mark’s unique background as a line manager in charge of regulatory compliance, as well as his experience with the Commonwealth of

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Mark combines deep in-house experience with a government background in public health to advise clients on their most pressing and sensitive concerns.

Mark’s unique background as a line manager in charge of regulatory compliance, as well as his experience with the Commonwealth of Massachusetts’ Executive Office of Health and Human Services, has shaped the practical approach he takes to his clients’ legal challenges. He is able to assess healthcare regulatory compliance programs and procedures quickly and efficiently and helps clients build on strengths and address shortcomings.

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  • Posted in:
    Health Care and Life Sciences
  • Blog:
    Healthcare Law Insights
  • Organization:
    Husch Blackwell LLP

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