Federal Judge Lets Surprise Billing Case Proceed in Rare Win

A federal judge in Maryland rejected a health insurance company’s attempt to dismiss an air ambulance provider’s lawsuit over an unpaid surprise billing award, marking a rare instance in which a court determined it had jurisdiction to enforce arbitration results under the No Surprises Act.

PHI Health LLC sued Optimum Choice Inc., which does business as United Healthcare, in the US District Court for the District of Maryland in July 2025, alleging the insurer had not paid more than $31,000 it was awarded under the law’s arbitration process, known as independent dispute resolution.

The No Surprises Act shields patients ...