Capitol Correspondence - 03.14.23

Federal Court Clarifies Order to Reinstate Medicaid Benefits in Carr v. Becerra Case

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A nationwide class of Medicaid recipients saw their benefits restored after weeks of inaction following a preliminary injunction in the case of Carr v. Becerra. The case involved the Centers for Medicare and Medicaid Services’ (CMS) revised guidance allowing states to transition individuals no longer eligible for Medicaid to the Medicare Savings Program.

After the preliminary injunction, the U.S. Department of Health and Human Services (HHS) indicated there was ambiguity in the injunction directing the Government to “reinstate its previous guidance.” As a result, Federal Judge Michael P. Shea created a clarifying order to provide distinctly clear instructions for the Government to reinstate benefits to the affected Medicaid recipients.

The order was significant because it provided explicit guidance to the Government on how to comply with the injunction, leaving no room for ambiguity. This meant that the affected Medicaid recipients could have their benefits reinstated with confidence, knowing that the order was specific and enforceable.