Deference To HHS On Medicaid Hurts Hospitals, 9th Circ. Told

Law360, New York (February 11, 2013, 6:24 PM EST) -- The American Hospital Association and other hospital groups on Thursday urged the Ninth Circuit to revisit its decision allowing California to enact 10 percent Medicaid payment cuts, saying the court’s deference to federal health officials would financially cripple hospitals.

A three-judge panel ruled Dec. 13 that the secretary of the U.S. Department of Health and Human Services deserved deference when approving changes to Medicaid plans, endorsing a conclusion that states need not take any particular steps when trimming reimbursement rates. The court rejected complaints from hospitals,...
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