Lexology August 1, 2024
On July 3, 2024, a federal court in Texas (“the Court”) issued a stay related to certain provisions of CMS’s Contract Year 2025 Medicare Advantage and Part D (“MAPD”) Final Rule (“2025 Final Rule”), which would change how agents and brokers are paid by Medicare Advantage (“MA”) and Part D plans. Specifically, the Court found in a joint ruling on Ams. for Beneficiary Choice (“ABC”) v. HHS and Council for Medicare Choice (“CMC“) v. HHS that CMS’s changes to three specific provisions of the 2025 Final Rule related to agent and broker compensation: 1) were arbitrary and capricious; 2) bypassed requirements of the Administrative Procedures Act (“APA”); and 3) exceeded CMS’s authority. The Court’s ruling came only days after the...
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