Public Hospitals Say Medicare Plan Would Illegally Stick Them For $4 Billion A Year

WASHINGTON (CN) - The National Association of Public Hospitals and Health Systems filed a federal lawsuit challenging the U.S. Department of Health and Human Services limitation on federal spending for state Medicaid programs, limitations estimated to cost hospitals $21 billion in the first five years.

The suit says the changes are "unlawful and ill-advised new limitations on federal financial participation in expenditures by State Medicaid programs that are directly contrary to the express will of Congress and longstanding CMS (Centers for Medicare & Medicaid Services) policy and practices."

The hospitals say a House Committee estimates the new rules will cost them more than $21 billion in the first five years.

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