Modern Healthcare: Supreme Court ruling on Medicaid limits providers’ ability to sue over low rates

Modern Healthcare: Supreme Court ruling on Medicaid limits providers’ ability to sue over low rates

By Lisa Schencker and Virgil Dickson

Last week’s Supreme Court 5-4 decision sharply limiting private healthcare providers’ right to sue state Medicaid agencies over low payment rates could reduce low-income Americans’ access to care.


It’s possible some providers may still try to sue state Medicaid agencies, said Jane Perkins, legal director of the National Health Law Program, which supported providers in the case. But they won’t be able to use the supremacy clause, which was their major legal weapon. They could try to sue Medicaid agencies by alleging the agencies violated laws requiring them to follow certain procedures in setting rates, or they could claim agencies were acting capriciously. But those strategies are much more difficult. “The avenue for judicial relief has certainly been shut down in a serious way,” Perkins said. Read the full article here. »

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