Becker's Healthcare August 20, 2025
A federal judge in Texas has struck down portions of a rule governing Medicare Advantage broker and marketing payments, siding with agent groups that challenged the regulation put into place last year.
On Aug. 18, U.S. District Judge Reed O’Connor vacated provisions of a CMS rule that had capped administrative payments at $100 and restricted certain contract terms between MA plans and third-party marketing organizations.
The plaintiffs (Americans for Beneficiary Choice and the Council for Medicare Choice) sued CMS in May 2024, arguing the agency lacked authority to impose the restrictions. CMS finalized the rule in April 2024, intending to curb steering and volume-based incentives by classifying administrative...
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