The federal government has asked the U.S. Supreme Court to review a case that challenges New York's hospital reimbursement system.
The high court is expected next month to announce whether it will hear the case (See related story, p. 36).
At issue is a decision by the 2nd U.S. Circuit Court of Appeals, which found that surcharges on New York hospital bills, which pay for bad debt and charity care, violate the federal Employee Retirement Income Security Act. Travelers Insurance Co. had brought the suit (May 9, p. 32).
The U.S. Solicitor General, the government's lawyer in Supreme Court cases, said the appeals court decision "imposes unwarranted limits" on state experiments to control costs and ensure access to healthcare.