The Supreme Court ruled today that an Obamacare rule change of Medicare reimbursements to hospitals should be removed, because officials did not follow the proper notice and comment regulations in implementing the new formula.
This ruling involves billions of dollars in Medicare payments to Disproportionate Share Hospitals.
The court ruled in favor of the Disproportionate Share Hospitals, that had sued over the enactment of the 2014 Obamacare policy, which reduced their payments, from CMS, for serving low-income and uninsured patients.
This payment reduction to these hospitals was enforced retroactively to October 1, 2013.
“In 2014, the government revealed a new policy on its website that dramatically—and retroactively—reduced payments to hospitals serving low-income patients,” Justice Gorsuch wrote in the Court’s majority opinion.
“Because affected members of the public received no advance warning and no chance to comment first, and because the government has not identified a lawful excuse for neglecting its statutory notice-and-comment obligations, we agree with the court of appeals that the new policy cannot stand.”
Sources: The Hill, Modern Healthcare, CMS MLN Fact Sheet.