AI health tech company Daffodil Health is rolling out a new platform aimed at supporting payers in managing the No Surprises Act dispute process.
The number of cases reaching the NSA's independent dispute resolution process continues to grow. For example, when the process was established by regulators, they projected about 17,000 cases would make it to IDR each year—however, 1.2 million were filed in just the first half of 2025.
Daffodil's tool is built to support insurers and third-party administrators in handling that volume of disputes, starting with intake and through negotiation, arbitration and reporting, the company said in an announcement.
The tool leans on AI to create a centralized work queue for managing the billing disputes that automates intake from email or payer portals. The platform also provides users with strategy recommendations and claims support based on previous disputes and context around the claim.
In addition, Daffodil said that its tool would also support the arbitration process with recommendations and submission-ready documentation as well as allow plans to track the status of claims and financial exposure.
The company said it secured $16.3 million in series A funding in February that supported further product development, including the platform for managing NSA disputes. Its product lineup is built on AI to support more modern claims processing and insurer administration.
“Bulk filings from providers and revenue cycle management firms have pushed dispute volumes beyond what payers and TPAs can reasonably manage," said Navin Nagiah, CEO and Co-Founder of Daffodil Health, in an announcement. "When deadlines slip, cases default, and payers end up paying out claims they may have had the grounds to contest."
"The IDR process failed because payers were never built to operate at this volume. I’ve seen how payers consistently lost ground not on merits, but on the mechanics," Nagiah continued. "With filing now cheaper, volumes will climb. This product solves that problem."