News Headlines Article

$3.2B Lawsuit Targets Medicare Underpayments
Health Leaders Media

Medicare’s antiquated system knowingly hurts patient care by underpaying doctors in 200 counties in 32 states, according to a $3.2 billion lawsuit filed by seven California counties and physicians, who want to force the agency to fix the system.

The court fight, which began in 2007, involves the plaintiffs’ contention that the federal fee schedule underpays physicians in certain counties by classifying those regions as rural, lower-cost counties, when they are in fact very expensive places to provide care, often in areas that are now very urbanized.