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DEPARTMENT OF MEDICAL ASSISTANCE SERVICES v. HHS

No. 18-5334.

967 F.3d 853 (2020)

DEPARTMENT OF MEDICAL ASSISTANCE SERVICES of the Commonwealth of Virginia, Appellant v. UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES and Alex Michael Azar, II, Secretary, U.S. Department of Health and Human Services, Appellees.

United States Court of Appeals, District of Columbia Circuit.

Decided August 4, 2020.

Attorney(s) appearing for the Case

Susannah Vance Gopalan , argued the cause for appellant. With her on the brief were Edward T. Waters , Phillip A. Escoriaza , and Christopher J. Frisina , Washington, DC.

Stephanie R. Marcus , Attorney, U.S. Department of Justice, argued the cause for appellees. With her on the brief was Mark B. Stern , Attorney, Washington, DC, and Robert P. Charrow , General Counsel, United States Department of Health and Human Services. R. Craig Lawrence , and Johnny H. Walker III , Assistant U.S. Attorneys, entered appearances.

Before: Srinivasan, Chief Judge, and Garland and Wilkins, Circuit Judges.

The Department of Health and Human Services disallowed roughly $30 million in Medicaid reimbursements to the Commonwealth of Virginia for payments Virginia made to two state hospitals. HHS determined that Virginia had materially altered its payment methodology without notifying HHS or obtaining approval and that the new...

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