AAMC Files Law Suit to Stop
Reduction In Medicaid UPL
March 8, 2002 - The AAMC March 7 joined with the American
Hospital Association (AHA), National Association of Children's
Hospitals and Related Institutions (NACHRI), and National
Association of Public Hospitals (NAPH) in filing a suit against
the Department of Health and Human Services to stop reductions
in the Medicare upper payment limit (UPL). The suit seeks
to halt a Centers for Medicare and Medicaid Services (CMS)
regulation that is scheduled to go into effect on March 19
that will reduce the Medicaid UPL for locally-owned public
hospitals from 150 percent to 100 percent.
The suit, filed in United States District Court for the Eastern
District of Arkansas in Little Rock, Arkansas, asserts primarily
that HHS violated the Administrative Procedures Act (APA)
in promulgating the final UPL rules and, in doing so, made
an arbitrary and capricious decision that will cause irreparable
harm to the nation's public hospitals and the patients they
serve. If the regulation goes into effect, it will result
in a $27 billion cut to the Medicaid program over the next
10 years. The loss of this money will significantly reduce
Medicaid funding for many safety net hospitals and health
systems, and will put at risk the financial stability of many
locally-owned public hospitals.
Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.orc
(202) 828-0490
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