This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
According to Edwin S. Kneedler, section 1395hh does not require the Centers for Medicare & Medicaid Services (CMS) to use notice‑and‑comment rulemaking before providing a reimbursement calculation to contractors.
According to Petitioner, the term “rule” in the lead‑in to subsection (a)(2) includes statements of policy, making the language redundant and imprecise.
Background and question before the Court
According to Edwin S. Kneedler, Section 1395hh does not require CMS to engage in notice‑and‑comment rulemaking before furnishing a component of a hospital’s reimbursement.
According to Petitioner, it also asks whether the statutory phrase “rule” encompasses statements of policy, affecting how substantive legal standards are defined.
What each side argues
Petitioner (Secretary of Health and Human Services)
According to Edwin S. Kneedler, section 1395hh does not require notice‑and‑comment rulemaking for the reimbursement calculation at issue.
According to Petitioner, the term “rule” includes statements of policy, making the statutory language redundant and imprecise.
Respondent (Allina Health Services)
Source-limited. The record does not yet support a complete account.
What happened at oral argument
According to Justice Kagan, justice Kagan: “May – may I take you back, Mr. Kneedler, to one of Justice Sotomayor’s original questions, which is just Heritage Reporting Corporation?”
According to Justice Sotomayor, justice Sotomayor: “But when is ever a statement of policy binding?”
Justice Kagan: “Do you have any other case that might be when the conference report says we’re reflecting recent cases? Is there anything else other than Bowen that you think it might be referring to?”
According to Justice Breyer, justice Breyer: “You don’t see it or you –”
According to Justice Alito, justice Alito: “You – you explained away the last 5,000 pages of the manual.”
What the Court decided
Why it matters
The agency’s 2014 issuance that counted Part C days as Part A entitled days reduced hospitals’ Medicare payments by billions of dollars nationwide.
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- e20fcf86d4f4687b7def-r1-f2c87647294b01e3.pdforal argument transcript
Guide generated September 26, 2026. Automated validation accepted this version.