HHS Hit With Suit Over Medicaid Copays For Ariz. Residents

Law360, Washington (May 22, 2012, 7:44 PM EDT) -- Four Arizona residents hit the U.S. Department of Heath and Human Services and Arizona's Medicaid program with a putative 123,000-member class action on Monday, claiming the agencies failed to follow federal regulations that limit copayment fees for Medicaid recipients.

According to the suit, HHS has allowed the Arizona Health Care Cost Containment System to illegally raise copay rates on low-income state residents since 2003, despite a 2011 appellate decision that overturned the first two agency copay approvals from 2003 and 2006.

Before the 2003 HHS copay...
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