In a much-anticipated decision in Family Rehab., Inc. v. Azar, Federal Judge Kinkeade enjoined the Centers for Medicare & Medicaid Services (“CMS”) from withholding Medicare payments to effectuate the recoupment of the alleged overpayments until an administrative law judge (“ALJ”) has heard and rendered a decision on Family Rehabilitation, Inc.’s (“Family Rehab”) appeal of CMS’s overpayment determination. The court ruled that Family Rehab established a substantial likelihood of success on the merits of its procedural due process claim—that CMS’s recoupment of alleged Medicare overpayments without providing the statutorily mandated ALJ hearing within the 90-day prescribed time—was a deprivation of Family Rehab’s property interest in Medicare payments.
Source: United States: Texas Federal District Court Prevents Withholding Of Medicare Payments / Mondaq