Medicare Act Bars Billing Firm’s Pay Suit Against Contractor

Dynasty Healthcare LLC, a medical billing company, failed in its effort to revive a third-party underpayment suit against a Medicare contractor Dynasty said negligently processed and misclassified its client’s Medicare service provider enrollment application.

A lower federal court correctly found that it didn’t have subject matter jurisdiction over Dynasty’s claims because they hadn’t been presented to the federal Department of Health and Human Services before being filed in court, the US Court of Appeals for the Second Circuit said Friday.

Dynasty’s claims arose under the Medicare Act, which requires channeling claims through the agency’s administrative review process before submitting them ...