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American Hospital Association, et al. v. Xavier Becerra, Secretary of Health and Human Services, et al.

Paid petition · United States Court of Appeals for the District of Columbia Circuit, No. 19-5048, 19-5198 · judgment July 31, 2020


Decided · June 15, 2022
Pre-decision estimate: 5% cert probability

Before the decision, modestly above the 4.1% base rate. The model weighted this up for a D.C. Circuit decision below, a dissent in the court below (flagged in the petition), and counsel who has filed here before.

Questions presented

  1. Under federal law, the reimbursement rate paid by Medicare for specified covered outpatient drugs is set based on one of two alternative payment methodologies. If the Department of Health and Human Services (HHS) has collected adequate “hospital acquisition cost survey data," it sets the reimbursement rate equal to the "average acquisition cost for the drug," and "may vary" that rate "by hospital group." 42 U.S.C. 1395l(t)(14)(A)(iii)(I). If HHS has not collected adequate "hospital acquisition cost data," it must set a reimbursement rate equal to the "average price for the drug," which is "calculated and adjusted by [HHS] as necessary for purposes of” the statute. 42 U.S.C. 1395l(t)(14)(A)(iii)(II). The question presented is whether Chevron deference permits HHS to set reimbursement rates based on acquisition cost and vary such rates by hospital group if it has not collected adequate hospital acquisition cost survey data.

  2. Added by the Court: Whether Petitioners’ suit challenging hhs’s adjustments is precluded by 42 U. s. c. §13951(t)(12).

Counsel of record

For petitioner
Donald B. Verrilli Jr.
Munger, Tolles & Olson LLP

For respondent
Elizabeth B. Prelogar
Solicitor General

Case

Conference history
Distributed for 3 conferences

Amicus briefs
4 cert-stage · 11 merits
(9 supporting pet./neither, 2 respondent)

Argument & decision

Argued November 30, 2021 — Donald B. Verrilli · Christopher G. Michel. Audio and transcript

Decided June 15, 2022. Opinion by Kavanaugh.

Proceedings

  1. Jul 18 2022
    JUDGMENT ISSUED
  2. Jun 15 2022
    Judgment REVERSED and case REMANDED. Kavanaugh, J., delivered the opinion for a unanimous Court.
  3. Nov 30 2021
    Argued. For petitioners: Donald B. Verrilli, Jr., Washington, D. C. For respondents: Christopher G. Michel, Assistant to the Solicitor General, Department of Justice, Washington, D. C.
  4. Nov 19 2021
    Reply of petitioners American Hospital Association, et al. filed. (Distributed)
  5. Oct 29 2021
    CIRCULATED
  6. Oct 27 2021
    Brief amicus curiae of Rural Hospital Coalition filed. (Distributed)
  7. Oct 27 2021
    Brief amicus curiae of Federation of American Hospitals filed. (Distributed)
  8. Oct 20 2021
    Brief of respondents Xavier Becerra, Sec. of H&HS, et al. filed.
  9. Oct 01 2021
    The record received from the U.S.C.A. DC Circuit is electronic and located on Pacer, also received are transcripts that has been electronically filed.
  10. Sep 27 2021
    Record requested from the U.S.C.A. D.C. Circuit.
  11. Sep 20 2021
    SET FOR ARGUMENT on Tuesday, November 30, 2021.
  12. Sep 10 2021
    Brief amicus curiae of Americans for Prosperity Foundation in support of neither party filed.
  13. Sep 10 2021
    Brief amici curiae of National Association of Home Builders, et al. filed.
  14. Sep 10 2021
    Brief amicus curiae of Chamber of Commerce of the United States of America in support of neither party filed.
  15. Sep 10 2021
    Brief amici curiae of Yale New Haven Health System, et al. filed.
  16. Sep 10 2021
    Brief amicus curiae of National Right to Work Legal Defense Foundation, Inc. filed.
  17. Sep 10 2021
    Brief amicus curiae of New Civil Liberties Alliance filed.
  18. Sep 10 2021
    Brief amici curiae of States of Indiana, et al. filed.
  19. Sep 09 2021
    Brief amici curiae of 37 State and Regional Hospital Associations filed.
  20. Sep 08 2021
    Brief amicus curiae of Pacific Legal Foundation filed.
  21. Sep 03 2021
    Brief of petitioners American Hospital Association, et al. filed.
  22. Sep 03 2021
    Joint appendix filed. (Statement of costs filed)
  23. Jul 28 2021
    Motion to extend the time to file the briefs on the merits granted. The time to file the joint appendix and petitioners' brief on the merits is extended to and including September 3, 2021. The time to file respondents' brief on the merits is extended to and including October 20, 2021.
  24. Jul 26 2021
    Motion for an extension of time to file the briefs on the merits filed.
  25. Jul 09 2021
    Blanket Consent filed by Petitioner, American Hospital Association, et al.
  26. Jul 02 2021
    Petition GRANTED. In addition to the question presented by the petition, the parties are directed to brief and argue the following question: Whether petitioners’ suit challenging HHS’s adjustments is precluded by 42 U. S. C. §1395l(t)(12).
  27. Jul 01 2021
    DISTRIBUTED for Conference of 7/1/2021.
  28. Jun 21 2021
    DISTRIBUTED for Conference of 6/24/2021.
  29. Jun 01 2021
    DISTRIBUTED for Conference of 6/17/2021.
  30. May 28 2021
    Reply of petitioners American Hospital Association, et al. filed. (Distributed)
  31. May 13 2021
    Brief of respondent Xavier Becerra, Sec. of H&HS in opposition filed.
  32. Apr 13 2021
    Brief amicus curiae of Rural Hospital Coalition in support of respondent filed.
  33. Apr 09 2021
    Motion to extend the time to file a response is granted and the time is further extended to and including May 13, 2021.
  34. Apr 08 2021
    Motion to extend the time to file a response from April 14, 2021 to May 13, 2021, submitted to The Clerk.
  35. Mar 31 2021
    Brief amicus curiae of Federation of American Hospitals filed.
  36. Mar 12 2021
    Brief amici curiae of Yale New Haven Health System, BJC Health Care, UPMC and Vanderbilt University Medical Center filed.
  37. Mar 04 2021
    Motion to extend the time to file a response is granted and the time is extended to and including April 14, 2021.
  38. Mar 03 2021
    Motion to extend the time to file a response from March 15, 2021 to April 14, 2021, submitted to The Clerk.
  39. Feb 23 2021
    Brief amici curiae of 36 State and Regional Hospital Associations filed.
  40. Feb 10 2021
    Petition for a writ of certiorari filed. (Response due March 15, 2021)