Supreme Court Strikes Down Medicare Payment Change

Morning Take: Health Program Renewals, FDA Funding
– CQ Roll Call

Manatt’s Anne O’Hagen Karl, a partner with Manatt Health, spoke with CQ Roll Call on the Supreme Court’s recent decision to strike down a 2014 change to Medicare payments for safety-net hospitals.

The Centers for Medicare & Medicaid Services (CMS) changed its calculation of payments to disproportionate share hospitals by factoring in Medicare Advantage enrollees, who typically make more money than do traditional Medicare patients, according to CQ Roll Call. The 7-1 ruling is estimated to affect between $3 billion and $4 billion in payments from 2005 to 2013.

Karl said in an interview with CQ Roll Call that the ruling could give further clarity to hospitals on how CMS would implement future changes to payment systems, but noted that it will “depend on how broadly the department views the decision.”

“The bigger questions are how does CMS interpret this going forward,” she added.

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