Southeast Arkansas Hospice v. Burwell, No. 15-1946 (8th Cir. 2016)
Annotate this CaseSEARK, operator of two hospice-care facilities, voluntarily entered into a provider agreement with the Secretary of Health and Human Services to receive Medicare reimbursement pursuant to the Medicare Act, 42 U.S.C. 1395c, 1395f(a)(7), 1395cc. The Act annually caps Medicare reimbursement. SEARK filed suit after the Secretary sent it seven demands for repayment, arguing that the cap violates the Takings Clause of the Fifth Amendment. The district court concluded that SEARK’s voluntary participation in the Medicare program precludes a takings claim. The court concluded that SEARK has not met its burden to prove the demands for repayment based on the statutory cap are a taking where the reimbursement cap allocates the government's capacity to subsidize healthcare; SEARK presented no evidence to suggest the cap makes it impossible to profitably engage in their business; and SEARK voluntarily chose to participate in the Medicare hospice program. Accordingly, the court affirmed the judgment.
Court Description: Benton, Author, with Murphy and Smith Circuit Judges] Civil case - Medicare. The Secretary's decision to invoke the reimbursement cap set out in 42 C.F.R. Section 418.308(d) was not an unconstitutional taking in violation of the Fifth Amendment as plaintiff has not met its burden of proving the demands for repayment under the statutory cap are a taking or that the cap made it impossible for plaintiff to profitably engage in its business; additionally, plaintiff voluntarily participated in the Medicare program.
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