The US Supreme Court held Monday in Azar v. Allina Health Services that the government's policy that reduced payments to hospitals serving low-income patients must be vacated for failing to identify a lawful excuse for neglecting its statutory notice-and-comment obligations under the Medicare statute.

This case arose out of the government's policy in counting Part C enrollees of Medicare as "entitled to benefits under" Part A when calculating additional payments to hospitals that serve low-income patients.

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