American Hospital Association v. Becerra
U.S. Supreme Court · decided June 15, 2022 · Supreme Court Database (Spaeth)
- Decided
- June 15, 2022
- Term
- October Term 2021
- Vote
- 9–0
- Majority author
- Justice Kavanaugh
- Issue area
- Economic Activity
- Disposition
- Reversed and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
(Slip Opinion) OCTOBER TERM, 2021 1 Syllabus NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321 , 337. SUPREME COURT OF THE UNITED STATES Syllabus AMERICAN HOSPITAL ASSOCIATION ET AL. v. BECERRA, SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT No. 20–1114. Argued November 30, 2021—Decided June 15, 2022 The Medicare statute lays out a formula that the Department of Health and Human Services must employ annually to set reimbursement rates for certain outpatient prescription drugs provided by hospitals to Medicare patients. 42 U. S. C. §1395l(t)(14)(A)(iii). That formula af- fords HHS two options. Option 1 applies if HHS has conducted a sur- vey of hospitals’ acquisition costs for each covered outpatient drug. Under this option, the agency may set reimbursement rates based on the hospitals’ “average acquisition cost” for each drug, and may “vary” the reimbursement rates “by hospital group.” §1395l(t)(14)(A)(iii)(I). Absent a survey, option 2 applies, and HHS must set reimbursement rates…
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