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Supreme Court Sides With Hospitals on Medicare Reimbursement

  • Justices find the US government wrongly cut Medicare payments
  • Drug reimbursement generally should reflect price, court says
The Supreme Court building in Washington, D.C.
The Supreme Court building in Washington, D.C.Photographer: Nathan Howard/Getty Images
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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.