The American Hospital Association and other hospital associations have filed a lawsuit to block implementation of a proposed Medicaid regulation that would cut $5 billion in funding to safety net hospitals, saying the regulation will make it harder to provide care for the uninsured. The hospitals specifically opposed the rule that would restrict federal Medicaid payments so that they do not exceed the cost of providing care. Congress last year put in place a moratorium that prevents CMS from issuing a final rule, but the moratorium is set to expire May 25, 2008.
The suit, filed in the U.S. District Court for the District of Columbia, argues that CMS has overstepped its authority, that Congress has barred the agency from imposing a cost limit on Medicaid payments to governmental providers (see Final rule with comment period, 72 FR 29748, May 29, 2007) and that CMS improperly issued the rule on the very day (May 25, 2007) that the moratorium on the rule took effect.
Source: CCH Washington Bureau, March 12, 2008.
For more information on this and related topics, consult the CCH® Medicare and Medicaid Guide.
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