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172896P.pdf   08/20/2018  Children's Health Care  v.  Centers for Medicare
   U.S. Court of Appeals Case No:  17-2896
   U.S. District Court for the District of Minnesota - Minneapolis   
[PUBLISHED] [Wollman, Author, with Arnold and Kelly. Circuit Judges] Civil Case - Administrative Procedure Act. Hospitals which receive Disproportionate Share Hospital payments, challenged the Secretary's Question 33 in 42 C.F.R. sec. 447.299, which included private insurance payments when calculating "uncompensated care costs," as an unauthorized legislative rule subject to notice and comment procedures. Whether Question 33 is a legislative rule or an interpretive rule is subject to de novo review. We join the First and Fourth Circuit Courts of Appeals in concluding Question 33 is a legislative rule subject to notice and comment procedures, not an interpretive rule, as the imposition of new reporting requirements for private insurance payments expanded the rule and constituted a substantive change in the regulation. Thus, we affirm the district court's determination that the Secretary was without authority to adopt the rule as an interpretive rule.