Lessons From Fox Insurance's Multitude Of Mistakes

Law360, New York (June 5, 2013, 1:10 PM EDT) -- The Centers for Medicare & Medicaid Services has historically used its authority to immediately terminate Part D plan sponsors only sparingly. In fact, it has done so only once. However, when it chooses to exercise this authority, plan sponsors should not count on courts to come to their aid.

In Fox Insurance Co. Inc. v. Centers for Medicare & Medicaid Services, the Ninth Circuit displayed a strong deference to CMS in its first-ever exercise of its authority to terminate immediately its contract with a Part D...
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