Supreme Court Sides With Hospitals on Medicare Reimbursement (1)

The U.S. Supreme Court said the federal government improperly cut more than $1 billion a year in Medicare reimbursements to hospitals in a ruling that limits regulators’ power to control what the program pays for some drugs.

The justices on Wednesday unanimously sided with the American Hospital Association in a clash over drug reimbursement rates for facilities that serve low-income communities.

Writing for the court, Justice Brett Kavanaugh said the Department of Health and Human Services improperly calculated reimbursement rates using a methodology Congress authorized only in limited circumstances.

The federal government said the rate cuts, which started in 2018, ...