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HHS Announces New Guidance on Reproductive Healthcare

On July 8, President Biden signed an executive order for abortion access. In this order, the US Department of Health and Human Services (HHS) pledged to take steps to ensure that all patients have access to the full rights and protections for emergency medical care afforded under the law. Currently, medical providers and hospitals are required by the Emergency Medical Treatment and Labor Act to provide stabilizing treatment for patients with emergency medical conditions. On July 11, the Biden administration reiterated, through new guidance from HHS, that medical providers must offer abortion services if the life of a mother is at risk and that procedures conducted under such circumstances would be protected regardless of state law. The state of Texas has already filed a lawsuit challenging the Biden administration on this new guidance on the grounds that it violates the rights of physicians who oppose providing abortions and violates a state’s right to invoke its own policies.

Additionally, the Office of Civil Rights released guidance for retail pharmacies on access to reproductive healthcare services. The guidance, directed toward the nation’s 60,000 retail pharmacies, directed that pharmacists must provide medications related to reproductive healthcare as directed and prescribed by providers. This includes abortion pills, birth control and other reproductive care treatments. The agency cited reports outlining instances in which women were denied certain medications because the drugs may be linked to abortion or the drugs have ingredients like those used for medication abortion, for example Methotrexate, which is sometimes used to treat certain types of cancer, psoriasis and rheumatoid arthritis, but can also be used off-label to end ectopic pregnancies.

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Biden Administration Takes Action to Improve Competition, Transparency and Quality for Hospitals and Nursing Homes

The Centers for Medicare & Medicaid Services (CMS) recently published detailed databases summarizing changes of ownership of Medicare-enrolled hospitals and skilled nursing facilities (SNFs). The databases currently include information from 2016 to 2022, but the data will be updated and released quarterly. CMS also released the skilled nursing facility prospective payment system (SNF PPS) proposed rule (the Proposed Rule), including proposed updates to payment based on quality and value-based care measures.

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HHS Supreme Court Loss Previews Low-Income Drug Discount Fight

A recent US Department of Health and Human Services (HHS) US Supreme Court loss involving drug reimbursements to hospitals may impact a larger battle over drug discounts for low-income Americans. According to this Blomberg Law article, the Court ruled in June that HHS improperly cut $1 billion a year in drug reimbursements to hospitals through a government program that assists at-need populations. Now, both HHS and hospitals may be on the same side of a different skirmish—whether the agency can require pharmaceutical companies to offer discounts to specific pharmacies. McDermott Partner Emily Jane Cook said language in the Court’s opinion “suggests that the court does have a very favorable view of the 340B program and the hospitals that participate in that program.”

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State Abortion Bans Signal Chaos for Providers

The US Supreme Court’s decision to overturn Roe v. Wade will generate a minefield of legal and criminal implications for healthcare providers, according to this Healthcare Dive article. McDermott Partners Stacey Callaghan and David Gacioch offer insight into what these restrictive state laws could mean for providers.

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Employers, Employees Search for Answers After Dobbs Decision

The US Supreme Court’s decision to overturn Roe v. Wade has left employers—and employees—with more questions than answers. While many employers have promised to pay for their employees to travel across state lines for an abortion, it’s unclear if employers might be sued for doing so. In this USA TODAY article, McDermott’s Sarah Raaii said employers may point to Justice Brett Kavanaugh’s opinion on the “constitutional right to interstate travel” for support.

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ESOP Litigation: Latest Trends and Questions

On May 6, 2022, McDermott Partner Chris Nemeth delivered a presentation during the 2022 TEA National Conference titled “ESOP Litigation: Latest Trends and Open Questions.” His presentation focused on recent significant employee stock ownership plan (ESOP) court decisions and emerging litigation trends in the ESOP industry. Chris and his co-presenter touched on the enforceability of arbitration clauses in the Employee Retirement Income Security Act of 1974 (ERISA) litigation, post-transaction debt forgiveness, and pleading and standing requirements.

For questions about employee benefits matters, please contact Chris or McDermott’s employee benefits practice team.




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US Supreme Court Ruling Complicates Abortion Insurance Coverage

The patchwork of US federal and state rules governing abortion insurance coverage will become more complicated following the US Supreme Court’s decision to overturn Roe v. Wade. In this MarketWatch article, McDermott’s Sarah Raaii said the situation has employers on edge.

“We’ve had a huge influx of employers reaching out and asking, ‘What should I be doing? Are there risks?’” Raaii said.

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Conflicting State Laws and ‘Unpredictable’ Enforcement Await Providers in Post-Roe America

In the aftermath of the US Supreme Court’s decision to overturn Roe v. Wade, legal experts say health systems and providers must immediately review their operations and prepare for potential enforcement by state prosecutors. According to this article published in Fierce Healthcare, McDermott Partner Stacey Callaghan said organizations should consult with counsel “as soon as possible” to ensure they understand the new post-Roe landscape.

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Healthcare Enforcement in the Post-Pandemic Era

As the world emerges from the COVID-19 pandemic, healthcare fraud enforcement remains a top priority for the US Department of Justice (DOJ) and other government agencies with enforcement authority. In this Westlaw Today article, McDermott Partners Laura McLane, Tony Maida and Dana M. McSherry describe some of the areas that have assumed particularly high enforcement priority, including private equity, telehealth and pandemic relief funds.

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What Employers Should Do Now That Roe Has Fallen

The monumental decision by the Supreme Court of the United States in Dobbs v. Jackson Women’s Health Organization to overturn Roe v. Wade presents significant challenges for employers and health plans. According to this Law360 article, employers should begin reviewing state laws, evaluating internal company policies, gauging employee reactions and preparing for legal challenges. McDermott’s Sarah Raaii called the Supreme Court’s decision “an administrative and potentially employee relations nightmare for employers.”

“It creates a lot of challenges for employers who just want to do right by their employees and continue offering these abortion benefits that they have historically done in the past,” Raaii said.

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