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943 F.3d 313
6th Cir.
2019
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Background

  • The Affordable Care Act temporarily increased payments to primary-care physicians under parallel Medicare (§1395l(x)) and Medicaid (§1396a(a)) provisions.
  • The Medicare provision expressly required (1) a “primary specialty designation” and (2) that at least 60% of recent Medicare billings be for primary-care services; the Medicaid provision required only the “primary specialty designation.”
  • CMS’s Final Medicare Payment Rule tracked the Medicare text, treating the physician’s own enrollment/self-designation as the primary-specialty designation and applying the 60% Medicare-billing test where the statute required it.
  • CMS’s Final Medicaid Payment Rule, by contrast, added verification requirements: a physician had to be board-certified in the specialty or show that 60% of recent Medicaid billings were for primary-care services.
  • Tennessee sought to recoup roughly $2.3 million paid to 21 family-medicine physicians under the Medicaid provision based on the CMS rule; the physicians sued, and the district court invalidated the Final Medicaid Payment Rule and enjoined its enforcement.
  • The Sixth Circuit affirmed, holding CMS’s added board-certification/60% Medicaid-billing requirements contradicted the statutory text.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether CMS lawfully interpreted “a physician with a primary specialty designation” in §1396a(a) to require board certification or a 60%-of-Medicaid-billings test The phrase means the physician’s own primary-specialty self-designation (as CMS treated the identical Medicare phrase); Congress omitted any 60% requirement from Medicaid CMS says it must verify specialty for Medicaid and may impose board certification or a 60%-billing test to limit payments The court held the phrase must mean the same self-designation as in the Medicare provision; CMS’s additional requirements are invalid

Key Cases Cited

  • Chevron U.S.A., Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984) (framework for reviewing agency statutory interpretations)
  • Powerex Corp. v. Reliant Energy Servs., Inc., 551 U.S. 224 (2007) (identical words in same statute normally have same meaning)
  • Erlenbaugh v. United States, 409 U.S. 239 (1972) (legislature generally uses a word with consistent meaning in a given context)
  • SAS Inst., Inc. v. Iancu, 138 S. Ct. 1348 (2018) (agencies must follow plain statutory text and not add requirements)
  • United States v. Ressam, 553 U.S. 272 (2008) (omission of a phrase in a parallel statute implies different meaning)
  • Friends of the Earth, Inc. v. Laidlaw Envtl. Servs., 528 U.S. 167 (2000) (requirements for redressability and injunctive relief)
  • Prewett v. Weems, 749 F.3d 454 (6th Cir. 2014) (omission inference in statutory interpretation)
  • In re United States, 817 F.3d 953 (6th Cir. 2016) (elementary statutory-interpretation principles applied)
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Case Details

Case Name: Andrew Averett v. United States Dep't of Health & Human Servs.
Court Name: Court of Appeals for the Sixth Circuit
Date Published: Nov 25, 2019
Citations: 943 F.3d 313; 18-5595
Docket Number: 18-5595
Court Abbreviation: 6th Cir.
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    Andrew Averett v. United States Dep't of Health & Human Servs., 943 F.3d 313