The U.S. District Court for the District of Columbia this week voided a Centers for Medicare & Medicaid Services rule regarding how third-party payments, such as private insurance or Medicare, are treated for purposes of calculating the hospital-specific limitation on Medicaid disproportionate share hospital payments. Twelve not-for-profit children’s hospitals in Texas, Minnesota, Virginia and Washington, D.C., that serve a disproportionate share of Medicaid and uninsured patients had asked the court to vacate the 2017 final rule as contrary to the plain language of the Medicaid Act and “arbitrary and capricious” under the Administrative Procedures Act. U.S. District Judge Emmet Sullivan found that the agency acted outside the scope of its statutory authority under the Medicaid Act and vacated the rule; as a result it no longer applies nationally. AHA had urged CMS and Congress to withdraw the rule, voicing support for the plaintiff’s arguments and significant concerns about the rule’s impact on Medicaid DSH hospitals.

Related News Articles

Headline
Congress last night approved legislation providing discretionary funding for certain federal programs for fiscal year 2019, preventing a shutdown of those…
Blog
Earlier this month AHA released a blog post that pointed out numerous flaws in a recent Health Affairs study on hospital and physician prices between 2007 and…
Headline
The AHA and Federation of American Hospitals today urged the U.S. Supreme Court to review a federal appeals court decision that allows False Claims Act…
Headline
The House Energy and Commerce Health Subcommittee today held a hearing on legislation to roll back changes to the Affordable Care Act by the Trump…
Headline
The AHA yesterday urged Sens. Bill Cassidy, R-La., and Dick Durbin, D-Ill., not to re-introduce legislation that would establish rehabilitation innovation…
Blog
AHA’s Association for Community Health Improvement’s annual conference is a chance for health care leaders to shape population health and equity initiatives…