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California · Federal IDR + state pathway
Out of network Open cruciate ligament repair, knee in California, CPT 27407
California runs its own process alongside the federal one. Which applies depends on the plan.
An underpaid Open cruciate ligament repair, knee (CPT 27407) claim in California does not have one dispute route — it has two, and picking the wrong one costs the claim. State-regulated DMHC and CDI plans follow California's IDRP. Self-funded ERISA plans follow the federal IDR process. Confirm routing by plan type before filing.
- Code
- CPT 27407
- Typical setting
- hospital or ASC
- California pathway
- Federal IDR + state pathway
Open repair of a cruciate ligament of the knee.
How California handles an out-of-network Open cruciate ligament repair, knee payment
California runs a binding Independent Dispute Resolution Process (IDRP) for out-of-network payment disputes (AB 72, 2016; Health & Safety Code §1371.9 / Insurance Code §10112.8). Plans pay the greater of their average contracted rate or 125% of Medicare, and either side may take the claim to the DMHC or CDI IDRP for a higher or lower amount.
Payment is benchmarked to the greater of the plan's average contracted rate or 125% of Medicare, then adjustable through the binding IDRP.
Applies to non-emergency care by a non-contracting provider at an in-network facility; the patient owes only in-network cost-sharing.
Routing decides the deadline. State-regulated DMHC and CDI plans follow California's IDRP. Self-funded ERISA plans follow the federal IDR process. Confirm routing by plan type before filing. Two patients can receive the same Open cruciate ligament repair, knee at the same facility and their claims follow different processes with different clocks. Confirm plan type against the CMS applicability chart before filing.
Why CPT 27407 gets paid short out of network
Anchored to the qualifying payment amount (QPA)
The plan pays Open cruciate ligament repair, knee at its own qualifying payment amount — its median in-network rate for the area — and treats that as the answer. Under the No Surprises Act the QPA is the plan's opening anchor, not a cap, and certified IDR entities weigh several other factors against it.
Out-of-network reduction with no contract on file
With no negotiated rate for Open cruciate ligament repair, knee (CPT 27407), the allowed amount is reduced to an out-of-network schedule that rarely reflects what the knee procedure actually involves in a hospital or ASC setting.
This is the national picture for the code. For the full breakdown see Open cruciate ligament repair, knee (CPT 27407), and for every procedure disputed in this state see California out-of-network IDR.
CPT 27407 in California — common questions
Does a Open cruciate ligament repair, knee claim in California go to state or federal IDR?
State-regulated DMHC and CDI plans follow California's IDRP. Self-funded ERISA plans follow the federal IDR process. Confirm routing by plan type before filing. For CPT 27407, the deciding factor is the patient's plan type rather than the procedure — the same code can route either way for two different patients at the same facility.
What is the deadline to dispute an out-of-network Open cruciate ligament repair, knee payment in California?
Payment is benchmarked to the greater of the plan's average contracted rate or 125% of Medicare, then adjustable through the binding IDRP. Missing the window forfeits the claim regardless of its merits, which is the most common way a Open cruciate ligament repair, knee dispute is lost in California.
Is CPT 27407 worth disputing in California?
Providers prevail in roughly 88% of federal IDR determinations they contest, and Open cruciate ligament repair, knee is hospital or asc work that is routinely paid below billed charge out of network. The question is usually whether the claim is eligible and the deadline is still open — which is what we check first, at no cost.
CPT 27407 in other states
Routing and deadlines change at the state line, even for the same procedure and payer.
More orthopedic surgery codes: Orthopedic surgery out-of-network disputes
Find out whether this California claim is still eligible
Send one denied EOB. We will tell you which process it routes to, whether the window is still open, and what the claim is worth — before you commit to anything.
Medically & clinically reviewed by Dr. John M. Abrahams, MD
Board-certified neurosurgeon and founder of Sydra · Last reviewed September 2026 · About the author
Sources
Figures reflect the published federal record across all disputes, not a prediction about any individual claim. This is general information, not legal or financial advice.
No outcome is guaranteed. Results vary by claim, payer, specialty, and documentation. Which process applies depends on plan type; confirm routing against the CMS applicability chart before filing. This is general information, not legal or financial advice.