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STATE OF N.Y. BY PERALES v. SULLIVAN

No. 1110, Docket 89-4004.

894 F.2d 20 (1990)

STATE OF NEW YORK, by its Commissioner of Social Services, Cesar A. PERALES, Petitioner, v. Louis R. SULLIVAN, M.D., Secretary of the United States Department of Health and Human Services, and the United States Department of Health and Human Services, Health Care Financing Administration, Respondents.

United States Court of Appeals, Second Circuit.

Decided January 5, 1990.

Attorney(s) appearing for the Case

Laurel W. Eisner, Asst. Atty. Gen. of the State of N.Y., New York City (Robert Abrams, Atty. Gen. of the State of N.Y., Judith T. Kramer, Asst. Atty. Gen. of the State of N.Y., New York City, of counsel), for petitioner.

Elizabeth Dusaniwskyj, Asst. Regional Counsel, U.S. Dept. of Health and Human Services, New York City (Annette H. Blum, Chief Counsel, U.S. Dept. of Health and Human Services, New York City, of counsel), for respondents.

Before KEARSE, CARDAMONE and PIERCE, Circuit Judges.

CARDAMONE, Circuit Judge:

The sole legal question involved in this appeal is whether New York hospitals may include in their reimbursement rates under the Medicaid Act, 42 U.S.C.A. §§ 1396-1396s (West 1983 & Supp.1989), some of the costs incurred in obtaining excess medical malpractice insurance for attending physicians. In attempting to delve into the vast, cumbrous array of the Medicaid statute and its regulations, the relevance of Bacon's observation...

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