October Term 2018 · Docket 17-1484
Does Medicare's internal calculation method require formal rulemaking?
Hospitals argue the agency bypassed required procedures to cut their payments.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Kneedler argued Section 1395hh did not require notice-and-comment rulemaking.
He stated the agency only shared a calculation component with contractors.
Mr. Shah argued the agency reduced hospital payment rights by billions of dollars.
He claimed the agency made a legal determination without proper procedure.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 25-41 — Transcript, file page 10, lines 25-41
- Official Supreme Court Transcript — file page 10, lines 47-53 — Transcript, file page 10, lines 47-53
- Official Supreme Court Transcript — file page 11, lines 17-27 — Transcript, file page 11, lines 17-27
- Official Supreme Court Transcript — file page 11, lines 31-47 — Transcript, file page 11, lines 31-47
- Official Supreme Court Transcript — file page 11, lines 51-7 — Transcript, file page 11, lines 51-7
- Official Supreme Court Transcript — file page 33, lines 37-53 — Transcript, file page 33, lines 37-53
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 4, lines 47-25 — Transcript, file page 4, lines 47-25
- Official Supreme Court Transcript — file page 48, lines 51-53 — Transcript, file page 48, lines 51-53
- Official Supreme Court Transcript — file page 5, lines 51-9 — Transcript, file page 5, lines 51-9
- Official Supreme Court Transcript — file page 6, lines 43-13 — Transcript, file page 6, lines 43-13
- Official Supreme Court Transcript — file page 7, lines 27-45 — Transcript, file page 7, lines 27-45
- Official Supreme Court Transcript — file page 8, lines 17-19 — Transcript, file page 8, lines 17-19
- Official Supreme Court Transcript — file page 8, lines 25-29 — Transcript, file page 8, lines 25-29
- Official Supreme Court Transcript — file page 9, lines 47-21 — Transcript, file page 9, lines 47-21
A citizen's guide to the whole case
What this case is about
The dispute centers on how Medicare calculates hospital reimbursement. Hospitals claim the agency changed payment rules without proper notice. The government argues this was an internal calculation, not a rule.
Official sources for this section
- Official Supreme Court Transcript — file page 33, lines 37-53 — Transcript, file page 33, lines 37-53
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 48, lines 51-53 — Transcript, file page 48, lines 51-53
How the case got here
The Supreme Court heard oral argument in this case on January 15, 2019.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
What each side wants
Hospitals want the Court to strike down the agency's calculation method.
The government wants the Court to uphold the agency's internal calculation.
Official sources for this section
- Official Supreme Court Transcript — file page 33, lines 37-53 — Transcript, file page 33, lines 37-53
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 48, lines 51-53 — Transcript, file page 48, lines 51-53
What each side says
Hospitals argue the agency changed a legal standard without notice-and-comment.
The government argues the agency merely shared an internal calculation with contractors.
Official sources for this section
- Official Supreme Court Transcript — file page 33, lines 37-53 — Transcript, file page 33, lines 37-53
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 48, lines 51-53 — Transcript, file page 48, lines 51-53
What the justices asked
Justice Sotomayor asked why Congress changed the statutory language from the APA standard.
Justice Breyer asked why the advocate did not directly address the policy statement concern.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 25-41 — Transcript, file page 10, lines 25-41
- Official Supreme Court Transcript — file page 10, lines 47-53 — Transcript, file page 10, lines 47-53
- Official Supreme Court Transcript — file page 11, lines 17-27 — Transcript, file page 11, lines 17-27
- Official Supreme Court Transcript — file page 11, lines 31-47 — Transcript, file page 11, lines 31-47
- Official Supreme Court Transcript — file page 11, lines 51-7 — Transcript, file page 11, lines 51-7
- Official Supreme Court Transcript — file page 4, lines 47-25 — Transcript, file page 4, lines 47-25
- Official Supreme Court Transcript — file page 5, lines 51-9 — Transcript, file page 5, lines 51-9
- Official Supreme Court Transcript — file page 6, lines 43-13 — Transcript, file page 6, lines 43-13
- Official Supreme Court Transcript — file page 7, lines 27-45 — Transcript, file page 7, lines 27-45
- Official Supreme Court Transcript — file page 8, lines 17-19 — Transcript, file page 8, lines 17-19
- Official Supreme Court Transcript — file page 8, lines 25-29 — Transcript, file page 8, lines 25-29
- Official Supreme Court Transcript — file page 9, lines 47-21 — Transcript, file page 9, lines 47-21
Why it matters
This case defines the boundary between agency rules and internal calculations. It determines when hospitals must receive formal notice before payment changes. The outcome shapes administrative agency power over healthcare funding.
Official sources for this section
- Official Supreme Court Transcript — file page 33, lines 37-53 — Transcript, file page 33, lines 37-53
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 48, lines 51-53 — Transcript, file page 48, lines 51-53
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 25-41 — Transcript, file page 10, lines 25-41
- Official Supreme Court Transcript — file page 10, lines 47-53 — Transcript, file page 10, lines 47-53
- Official Supreme Court Transcript — file page 11, lines 17-27 — Transcript, file page 11, lines 17-27
- Official Supreme Court Transcript — file page 11, lines 31-47 — Transcript, file page 11, lines 31-47
- Official Supreme Court Transcript — file page 11, lines 51-7 — Transcript, file page 11, lines 51-7
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 4, lines 47-25 — Transcript, file page 4, lines 47-25
- Official Supreme Court Transcript — file page 5, lines 51-9 — Transcript, file page 5, lines 51-9
- Official Supreme Court Transcript — file page 6, lines 43-13 — Transcript, file page 6, lines 43-13
- Official Supreme Court Transcript — file page 7, lines 27-45 — Transcript, file page 7, lines 27-45
- Official Supreme Court Transcript — file page 8, lines 17-19 — Transcript, file page 8, lines 17-19
- Official Supreme Court Transcript — file page 8, lines 25-29 — Transcript, file page 8, lines 25-29
- Official Supreme Court Transcript — file page 9, lines 47-21 — Transcript, file page 9, lines 47-21
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 33, lines 37-53 — Transcript, file page 33, lines 37-53
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 48, lines 51-53 — Transcript, file page 48, lines 51-53
- Official Supreme Court Transcript — file page 33, lines 37-53 — Transcript, file page 33, lines 37-53
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 48, lines 51-53 — Transcript, file page 48, lines 51-53
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.