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No. 20-1641October Term 2020Decided Jun 21, 2022

Docket 20-1641October Term 2020 (2020–2021)

Marietta Memorial Hospital Employee Health Benefit Plan v. DaVita Inc.

The key question is whether treating all dialysis claims the same is lawful if the real-world effect is to push costs toward Medicare.

Case status

Current stage
Decided
Latest event
Decision released Jun 21, 2022
Case Accepted
Arguments
Decision ReleasedJun 21, 2022
What it's about

This case was about whether an employer health plan unlawfully structured its dialysis coverage to shift costs to Medicare for patients with end-stage renal disease. The Court considered whether a plan that pays the same limited outpatient dialysis benefits for everyone still violates the Medicare Secondary Payer Act because dialysis patients are overwhelmingly people with end-stage renal disease.

Question presented

1. Congress enacted the Medicare Secondary Payer Act as a means to conserve Medicare resources. Among other things, the Act provides that group health plans may not "take into account" the fact that a plan participant with end stage renal disease is eligible for Medicare benefits. Does a group health plan that provides uniform reimbursement of all dialysis treatments observe that prohibition? 2. Under the Medicare Secondary Payer Act, a group health plan also may not "differentiate" between individuals with end stage renal disease and others "in the benefits it provides." Does a plan that provides the same dialysis benefits to all plan participants, and reimburses dialysis providers uniformly regardless of whether the patient has end stage renal disease, observe that prohibition? 3. Is the Medicare Secondary Payer Act a coordination-of-benefits measure designed to protect Medicare, not an antidiscrimination law designed to protect certain providers from alleged disparate impact of uniform treatment?

Case path

United States Court of Appeals for the Sixth Circuit / Decision released Jun 21, 2022

Area

Decided Supreme Court case

Briefing

What it's about

The Supreme Court is being asked whether an employer health plan breaks the Medicare Secondary Payer Act when it pays the same limited amount for outpatient dialysis for every enrollee. DaVita says that even this uniform design can unlawfully shift costs to Medicare because most dialysis patients have end-stage renal disease.

Vote

The case is still pending, and no oral argument is scheduled yet. The fight is over whether a uniform dialysis payment rule can still "take into account" Medicare eligibility or "differentiate" in benefits for people with end-stage renal disease.

Impact

The case could affect how employer health plans cover dialysis and when Medicare ends up paying more of the bill. For example, a worker or dependent who needs regular dialysis could be affected by how much a job-based plan reimburses for that treatment.

What's next

Watch for the Court to schedule oral argument or make another procedural move. No decision window is available yet.

What is the main dispute in Marietta Memorial Hospital Employee Health Benefit Plan v. DaVita Inc.?

The case asks whether a health plan can lawfully pay the same limited dialysis benefit to everyone. DaVita says that approach still harms patients with end-stage renal disease and shifts costs to Medicare.

Who could feel the real-world effects of this case?

Patients who need regular dialysis, employer health plans, and Medicare could all be affected. The answer may shape who pays more when dialysis treatment is needed over time.

What should readers watch for next in this case?

The next major step is a scheduling move, especially oral argument. Until then, there is no decision date to watch.

Decision

Decision record

What the Court decided

The key question is whether treating all dialysis claims the same is lawful if the real-world effect is to push costs toward Medicare.

Impact

The case could affect how employer health plans cover dialysis and when Medicare ends up paying more of the bill. For example, a worker or dependent who needs regular dialysis could be affected by how much a job-based plan reimburses for that treatment.

Not official Court text.

Opinion documents

Timing

Decided June 21, 2022

The Court released its decision on June 21, 2022 without hearing oral argument.