Court rules 5-4 that such disputes should be resolved by Department of Health and Human Services
By Jess Bravin
WASHINGTON—The Supreme Court said Tuesday that Medicaid providers can’t sue states claiming they were underpaid for medical services to the poor, ruling such disputes should be resolved instead by the U.S. Department of Health and Human Services.
Federal law gives states discretion in setting Medicaid rates, as long as they follow a broad set of factors intended to ensure health services remain available to the poor without encouraging the “unnecessary utilization of such care.” In Idaho, several companies that provide home care for intellectually disabled people sued state officials claiming reimbursement rates set by the state were too low.
