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How a Federal IDR Entity Is Selected, and How a Party Can Object

Every Federal IDR dispute under the No Surprises Act is decided by a certified IDR entity. The June 4, 2026 Federal IDR Operations final rule (91 FR 33949) revised the mechanics of how that entity is named and how a party can object to the entity preliminarily named. This page describes that process. It takes no position on any pending or hypothetical dispute and gives no guidance on how a party should exercise an objection.

Preliminary selection: joint agreement, then a preferred entity, then random

The parties may jointly select a certified IDR entity. The date of preliminary selection of the certified IDR entity is three business days after the date of IDR initiation if the parties jointly select an entity, or six business days after the date of IDR initiation if the parties fail to jointly agree (45 CFR 149.510(c)(1)(iii)).

Where the parties do not jointly agree, each party may propose a preferred certified IDR entity in its notice, and the rule sets out a sequence for reconciling a preferred entity named by one party with an alternative preferred entity a second party proposes, including each party's right to state agreement with, or an objection to, the other party's alternative proposal (45 CFR 149.510(c)(1); 91 FR 33949, discussing the notice-and-response sequence for naming a preferred or alternative preferred certified IDR entity).

The objection window: third and fifth business day

If the party last in receipt of the applicable notice does not object by the end of the third business day after the date of IDR initiation, the Secretary will select the final alternative preferred certified IDR entity named in the applicable notice (45 CFR 149.510(c)(1)). If that party instead notifies the Secretary of its objection to the alternative preferred certified IDR entity by the fifth business day after the date of IDR initiation, the Secretary will randomly select a certified IDR entity, and will notify the parties of that preliminary selection no later than the sixth business day after the date of IDR initiation (45 CFR 149.510(c)(1); 91 FR 33949 at 34041).

Random selection: no "exclusion list," a same-dispute rule

When the Secretary selects randomly, the pool is every certified IDR entity that charges a fee within the allowed range of certified IDR entity fees -- other than the preferred certified IDR entity and any alternative preferred certified IDR entity previously selected in that same dispute by a party, unless there is no other certified IDR entity available to select, in which case one of those previously-named entities may still be selected (45 CFR 149.510(c)(1); 91 FR 33949 at 34041). This is a narrow, per-dispute exclusion of entities already named in that specific dispute -- it is not a standing roster, blacklist, or "exclusion list" of entities barred across disputes generally. The rule text reviewed for this page does not describe any cross-dispute exclusion list, and this guide states plainly that none is described there.

If there are insufficient certified IDR entities within the allowed fee range available to arbitrate the dispute, the Secretary will select a certified IDR entity that has received approval to charge a fee outside the allowed range (45 CFR 149.510(c)(1)).

Final selection: the 3-business-day conflict attestation

Preliminary selection is not final selection. The certified IDR entity preliminarily selected for a dispute must review the selection, and the selection is finalized only if the entity attests to the Secretary, within 3 business days, that it meets specified requirements, including that it does not have a conflict of interest as defined in 29 CFR 2590.716-8(a)(2)(iv), and that personnel assignment and personnel decisions related to the dispute are not made based on the likelihood that assigned personnel will support a particular party (45 CFR 149.510(c)(1)(iv); 91 FR 33949 at 34041-34042).

If the preliminarily selected certified IDR entity attests to having a conflict of interest, or does not timely attest at all, the Secretary will randomly select another certified IDR entity and notify the parties of the newly selected entity (91 FR 33949 at 34042; 45 CFR 149.510(c)(1)(iv)). The same conflict-of-interest standards that govern this attestation are set out separately in the rule (45 CFR 149.510; 91 FR 33949, section on conflict of interest standards).

Why this sequence matters

The distinction between preliminary and final selection means naming an entity does not by itself decide who will hear a dispute -- the attestation step is a substantive check, not a formality, and either party's conflict-of-interest objection or the entity's own attestation can still change which certified IDR entity is finally assigned. This guide describes the mechanics of that sequence only; it does not evaluate any specific entity's eligibility or conflicts.


Trilatic is preparing an application to become a certified Federal IDR entity and is not accepting disputes. This guide states no outcome and gives no advice on offers or amounts.

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A 90-minute recorded session on these rules is available to firms and review organisations; enquiries to research@trilatic.com.