Medicare Advantage Lawsuit: 80 Hospitals Challenge HHS Payment Reductions
Medicare Advantage Lawsuit Overview
In a significant move, eighty hospitals have filed a lawsuit against HHS concerning the recent Medicare Advantage payment rules. The hospitals contend that the Part C (Medicare Advantage) Days Final Rule unlawfully reduced disproportionate share hospital payments by an estimated $3 billion.
Allegations Against HHS
According to the lawsuit, by altering the payment structure, HHS and CMS have jeopardized the financial stability of numerous hospitals. These institutions are especially reliant on these funds to support low-income patients.
- Impact on Hospitals: The reduction in payments could lead to hospital cuts in services.
- Legal Framework: The lawsuit highlights potential violations of federal laws governing Medicare.
Responses and Next Steps
In response to the lawsuit, Providence and Cleveland Clinic are among the prominent names raising concerns over the financial implications this rule poses to healthcare provision.
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