HHS Must Revisit $220M Hospital Pay Cut, Judge Rules

Law360, New York (September 21, 2015, 11:04 PM EDT) -- The U.S. Department of Health and Human Services failed to allow sufficient public comment on a $220 million reimbursement cut related to its “two-midnight rule” on hospital admissions and must restart the rulemaking process, a D.C. federal judge ruled Monday.

The decision from U.S. District Judge Randolph D. Moss found that HHS violated the Administrative Procedure Act in 2013 because it didn’t fully disclose actuarial assumptions and methodology supporting a 0.2 percent Medicare pay cut that amounts to $220 million annually.

“The court agrees that [HHS’] failure to disclose the critical assumptions relied upon by the HHS actuaries deprived [hospitals] of...

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