DISCLAIMER: The following unofficial case summaries are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
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.