FOLLOW US

America December 8, 2024 3 mins read

Fifth Circuit Questions Medicare’s New Policy on Nurse Practitioners and Cost Attribution

America ı By Rochdi Rais

0 Comments

cms-headquarters

The Fifth Circuit Court of Appeals raised concerns Friday over a new policy from the Centers for Medicare and Medicaid Services (CMS) that could cost four Texas anesthesia practices up to $4 million in reduced reimbursements. U.S. Circuit Judge Cory T. Wilson questioned the government's justification for including nurse practitioners working in anesthesia practices as primary care providers under CMS' merit-based incentive payment system (MIPS), which holds primary care clinicians accountable for their patients’ total Medicare costs.

During oral arguments, Judge Wilson expressed skepticism about the policy's logic. He noted that while the government attributes costs to nurse practitioners, their role in a specialty practice like anesthesia shouldn’t be counted in the same way as those in primary care. “It does seem incongruous to me that you're attributing costs to nurse practitioners and physician assistants in a specialty practice that's otherwise excluded from attribution of cost,” Wilson said. “Why? How do you do that?”

The case centers on whether CMS' inclusion of nurse practitioners in MIPS, despite their role in non-primary care settings, is reasonable. Caroline Lopez, representing the government, argued that the courts cannot address this issue due to legal restrictions on reviewing cost measures under MIPS. She further contended that CMS' policy was sound because it tracks the types of care provided by clinicians, not necessarily the type of practice.

Lopez explained that nurse practitioners and physician assistants are classified by CMS as primary care providers because of their billing patterns, which suggest they typically provide primary care services. "If the underlying Medicare data did not indicate that these nurse practitioners were billing for primary care, they wouldn't come within the measure," Lopez said.

However, the anesthesia practices' attorney, Eric McArthur of Sidley Austin LLP, argued that nurse practitioners should not be considered primary care providers simply because they assist in running an anesthesia practice. McArthur emphasized that the inclusion of these practitioners in the cost attribution methodology could lead to unfair financial consequences for anesthesia practices, as it could result in them being held accountable for the entire cost of a patient’s Medicare care. This could include post-operative care such as monitoring pain levels and medication, which falls outside of primary care.

McArthur likened the situation to a car needing gasoline to function, arguing that while the car uses gasoline, it does not mean gasoline is part of the car itself. "My car needs gasoline to run," he said. "That doesn't mean that gasoline is part of my car, that means my car uses gasoline to run down the road."

The panel, which included Judges W. Eugene Davis, James E. Graves Jr., and Cory T. Wilson, will continue to evaluate the case. The outcome could have significant implications for how CMS applies its policies to different medical specialties.

The anesthesia practices are represented by attorneys from Sidley Austin LLP, including Eric D. McArthur, Brenna E. Jenny, Cody M. Akins, and Hundley Poulson. The U.S. government is represented by lawyers from the Department of Justice’s Civil Division and in-house counsel for the Department of Health and Human Services.

The case is U.S. Anesthesia Partners of Texas et al. v. U.S. Department of Health and Human Services et al., case number 24-10384, before the U.S. Court of Appeals for the Fifth Circuit.

Previous Article

U.S. Supreme Court to Review Case on Prisoners’ Right to Amend Habeas Petitions

Read More
2773 Posts

Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America October 03, 2026
Diesel Crisis: G7 Deal Leaves Questions About New Supply
By – Michallie Harrison
America October 2, 2026
SNAP Cost Shift Sends a Bigger…

WASHINGTON — A SNAP cost shift took effect Thursday, requiring…

By – Michallie Harrison
America October 2, 2026
Cornell University Rape Case Escalates as…

The Cornell University rape case has taken a dramatic new…

By – Rachel Moore
America October 2, 2026
Atlantic Coast Insurance Suspension Follows Growing…

The atlantic coast insurance suspension has added another layer of…

By – Rachel Moore
America October 2, 2026
Kaiser Permanente Layoffs Eliminate 147 Jobs…

A major shake-up is coming to Kaiser Permanente’s California workforce,…

By – Rachel Moore
America October 2, 2026
ICC Ends Contract With French Insurer…

The International Criminal Court has severed its health insurance relationship…

By – Rachel Moore
America October 2, 2026
Minnesota Health Insurance Rates Rise as…

Minnesota residents buying health coverage outside employer-sponsored plans are heading…

By – Rachel Moore
America October 2, 2026
Minnesota Health Insurance Rates Rise as…

Minnesota residents buying health coverage outside employer-sponsored plans are heading…

By – Rachel Moore
America October 2, 2026
Nexfibre’s $2.7B Deal Faces U.K. Competition…

The U.K. competition regulator has raised a major red flag…

By – Tyler Brooks
America October 2, 2026
NFL Concussion Claims Count as Separate…

What the Coverage Ruling Means Each former player’s claim counts…

By – Samuel Lopez
America October 2, 2026
Visa Mastercard Antitrust Suit Targets Card…

A San Diego pizza restaurant has taken aim at two…

By – Tyler Brooks
America October 2, 2026
Operation Epic Fury: Trump Warns Iran…

Operation Epic Fury remains central to the Trump administration’s account…

By – Jackie Allen
America October 2, 2026
Capitol Police Plaque Lawsuit Dismissal Ends…

Sometimes a legal fight isn’t about the money or the…

By – Tyler Brooks
America October 2, 2026
Killed by in-laws: New York Times…

Jonathan McKinsey, 40, was killed by his elderly in-laws. They…

By – Jackie Allen
America October 1, 2026
Government Spending: Trump Administration Moves to…

 The Trump administration is moving to cancel nearly $1 billion…

By – Jackie Allen
America October 1, 2026
JPMorgan Executive Renews Countersuit After Ex-Banker’s…

The “sex slave” allegations involving JPMorgan Chase executive Lorna Hajdini…

By – Jackie Allen
America October 1, 2026
Diesel Crisis: Louisiana Relief Meets New…

Louisiana’s diesel crisis has entered October with emergency relief still…

By – Michallie Harrison
America September 30, 2026
Chad Lowe’s Daughter Fiona Dies at…

Actor Chad Lowe and his wife, producer Kim Painter, are mourning the…

By – Jackie Allen
America September 29, 2026
Clone Saga could replace Spider-Noir as…

The Clone Saga could be coming to television as Sony…

By – Jackie Allen
America October 2, 2026
G7’s Release of 100M Barrels of…

What Truckers and Consumers Need to Know The G7’s 100-million-barrel…

By – Samuel Lopez
America September 30, 2026
Former NASCAR Driver Jennifer Jo Cobb…

What This Verdict Means A North Carolina jury found former…

By – Samuel Lopez
America September 30, 2026
Arnold Schwarzenegger Heads to Jury Trial…

What the Jury Will Decide Schwarzenegger has conceded negligence in…

By – Samuel Lopez
America September 30, 2026
Oklahoma Judge Strips Secrecy From 11…

Inside the Hursh Courtroom Showdown A judge removed the confidential…

By – Samuel Lopez
America September 30, 2026
AI Is Creating New Losses Faster…

What Policyholders Need to Know Deepfakes and misinformation dominate reported…

By – Samuel Lopez
America September 30, 2026
California ‘Kelvin Wave’ Phenomena Could Supercharge…

What Coastal Homeowners Need to Know A massive El Niño-linked…

By – Samuel Lopez
America September 29, 2026
Trump Launches America.gov AI Portal That…

What Americans Need to Know gov is now an AI-powered…

By – Samuel Lopez
America September 28, 2026
Pope Leo XIV Condemns France’s New…

What Readers Should Know Pope Leo XIV used his visit…

By – Samuel Lopez
America September 27, 2026
Strangers Collected $30 Million In ‘Illegal…

What You Need to Know 1. George A. Neukom Jr.’s estate…

By – Samuel Lopez
America September 26, 2026
Princess Diaries Star Heather Matarazzo Says…

WHY THIS MATTERS Heather Matarazzo just admitted something most working…

By – Samuel Lopez
America September 24, 2026
California’s $11 Billion Undocumented Immigrant Benefits…

By Samuel López | USA Herald SACRAMENTO – California is…

By – Samuel Lopez
America September 22, 2026
Hayden Panettiere’s Cause of Death Confirms…

What the Toxicology Findings Tell Us Hayden Panettiere’s death has…

By – Samuel Lopez
America September 28, 2026
JJ McCarthy Trade Sends Former First-Rounder…

Two years ago, a franchise spent a top-10 pick on…

By – Tyler Brooks
America September 26, 2026
New York Sues Polymarket Claiming Prediction…

What This Fight Is Really About New York says Polymarket…

By – Samuel Lopez
America September 24, 2026
New York Sues Polymarket Over Alleged…

What’s Riding on the Bet New York says Polymarket’s sports…

By – Samuel Lopez
America September 23, 2026
Roblox widow alleges $6 million scam,…

The Roblox widow says a former companion took $6 million…

By – Jackie Allen
America September 22, 2026
Network Traffic Challenges May be Reshaped…

Network traffic has traditionally moved in one dominant direction: from…

By – Jackie Allen
America September 21, 2026
Gilbert Goons Defendant Arrested Again for…

A Gilbert Goons defendant awaiting trial in the 2023 death…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter