Puerto Rico’s Medicare Advantage Pay, Termination Law Barred

March 2, 2021, 4:17 PM

Puerto Rico suffered a setback in its attempt to keep health-care providers from fleeing the island over lower-than-mainland pay practices, as federal law bars a provision prohibiting Medicare Advantage organizations from reimbursing providers at lower rates than regular Medicare pays, a federal court said.

The Medicare Prescription Drug, Improvement and Modernization Act broadly preempts any state law or regulation designed to apply to any Medicare Advantage plan or organization, with the narrow exception of licensing and solvency standards, the U.S. District Court for the District of Puerto Rico said Monday.

The island government thus may not enforce Section 7 of...

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