Alex M. Azar, II, Secretary of Health and Human Services, Petitioner v. Allina Health Services, et al.

The Supreme Court resolved a fight over whether the Department of Health and Human Services had to give public notice and take comments before sending a Medicare payment instruction to a contractor. The instruction affected whether Medicare Part C enrollees were counted as people "entitled to benefits under" Part A in a payment formula for certain hospitals.

The answer affects how HHS can change Medicare payment policy and whether hospitals get a chance to object before a new payment method takes effect. For example, hospitals that serve many low-income patients could see their Medicare payments rise or fall based on how that formula is announced.

The Supreme Court has finished this case. HHS, hospitals, and lower courts must now apply the Court's decision in future Medicare payment disputes involving similar instructions.

The case asked whether HHS had to use notice-and-comment rulemaking before giving a Medicare contractor payment instructions. Those instructions affected how Part C enrollees were counted in a hospital payment formula.

It affects how quickly and how openly HHS can change payment rules. Hospitals serving many low-income patients may gain or lose Medicare money depending on that process.

The Supreme Court's work on this docket is over. Agencies and lower courts must follow the decision when similar Medicare payment disputes arise.