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Pulmonary Services: 4.16× the Insurer's Own Benchmark

In the last quarter of 2025 the median prevailing offer in pulmonary services disputes was 4.16× the qualifying payment amount — the figure the plan itself calculated. Across the second half of 2025, certified IDR entities decided 6,889 payment determinations in this category, covering 7,089 items or services.

The Numbers

What the Federal Data Says About Pulmonary Services

4.16×
Median prevailing offer as a share of QPA, Q4 2025
4.22×
The same figure one quarter earlier, Q3 2025
6,889
Payment determinations decided in this category, H2 2025
85%
Of all determinations nationally went to the provider side, H2 2025

How to read this. The qualifying payment amount is the plan's own calculated benchmark — generally the median contracted rate for the service in the geographic area. A median prevailing offer of 4.16× QPA means that in half of the decided disputes in this category, the offer the certified IDR entity selected was at least 4.16 times what the plan had calculated. It is a measure of the gap between the plan's benchmark and what an independent entity found defensible. It is not a prediction, a guarantee, or an average recovery for any particular practice, and it does not include disputes that were found ineligible or that closed before a determination. CPT range for this category: 94002–94799 (ventilator management, pulmonary function testing, and respiratory diagnostic procedures).

Source: CMS, Federal Independent Dispute Resolution Process — Supplemental Tables, Q3 and Q4 2025, Table 14 (prevailing offers relative to QPA by specialty) and Table 12 (payment determination outcomes). Published by CMS here.

Why This Happens

Why Pulmonary Services Claims End Up Out of Network

Pulmonary services reach out-of-network status through two doors. Diagnostic testing — spirometry, plethysmography, gas diffusion studies — is often performed and interpreted in a hospital-based lab by a physician the patient did not select. And critical respiratory care during an emergency admission falls under the Act's emergency protections regardless of network status.

Like other testing categories, pulmonary work splits into technical and professional components, and a dispute frequently turns on which component the plan's benchmark actually describes. That is an argument won with the billing detail and the interpretation record, not with rhetoric.

What To Do

Deciding Whether a Claim Is Worth Disputing

Three things determine whether a specific claim belongs in federal arbitration, and none of them is the specialty itself.

1. Is the claim eligible?

Roughly one in five disputes initiated in 2025 was found ineligible — the single largest source of wasted effort in this process. Eligibility turns on whether the item or service falls under the federal protections rather than a state process, whether open negotiation ran its full 30 business days, and whether the dispute was filed within the four-business-day window that follows. Getting this wrong costs the fee and the claim.

2. Does the arithmetic work?

Since June 11, 2026, the administrative fee is $15 per party per dispute, down from $115. The certified IDR entity fee is set within a range published annually by the Departments and is paid by the non-prevailing party. Against those costs, the relevant question is the gap between the plan's payment and a defensible value for the service — and the federal data shows that gap by claim size is largest on smaller claims, not larger ones.

3. Can the claims be batched?

Qualifying claims may be submitted together in a single dispute. For a pulmonary services practice generating similar claims against the same plan, batching is usually what turns a marginal economic case into a clear one.

We review claims against these three tests before anything is filed, and we are paid only out of what is actually recovered. If the claims do not clear the tests, we say so.

One thing worth checking today. The 30-business-day open negotiation period has to start with a written notice to the plan, and the four-business-day window to initiate IDR runs immediately after it ends. Claims are lost to that calendar far more often than they are lost on the merits.

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