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Supreme Court decides Medicare reimbursement calculation

  • On Tuesday, the Supreme Court issued a 7-2 ruling in favor of the Department of Health and Human Services in a dispute involving Medicare reimbursement formulas for over 200 hospitals in 30 states that serve a high number of low-income patients.
  • The dispute arose because hospitals sought to change how Medicare calculates disproportionate share hospital payments for treating low-income patients, challenging a lower court’s restriction to patients receiving Supplemental Security Income payments monthly.
  • Justice Amy Coney Barrett wrote the majority opinion emphasizing that the law requires counting only patients who actually receive SSI cash benefits in the hospitalization month, rejecting hospitals’ broader view including non-cash or enrolled-but-not-paid patients.
  • Justice Ketanji Brown Jackson dissented with Justice Sotomayor, arguing the majority’s focus on monthly payments ignores the Social Security program’s realities and quoting its interpretation as “illogic” that misrepresents congressional intent.
  • The ruling upholds the current formula, potentially affecting over $4 billion in payments to safety-net hospitals, which remain critical for serving low-income patients but face ongoing reimbursement challenges.
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Supreme Court decides Medicare reimbursement calculation

WASHINGTON — The Supreme Court sided on Tuesday with the Department of Health and Human Services in a dispute over the rate under Medicare the government pays to hospitals that serve low-income patients. Read more...

·Vancouver, United States
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arcamax.com broke the news in on Tuesday, April 29, 2025.
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