By Lawrence Hurley
WASHINGTON (Reuters) - The U.S. Supreme Court is set to decide in a case coming from Idaho whether private medical providers can sue a state in order to raise Medicaid reimbursement rates to deal with rising medical costs.
The justices agreed on Thursday to hear an appeal filed by the state of Idaho, which says that medical providers have no legal recourse to sue. The case focuses on rates for certain residential services.
Medicaid is a federal health insurance program for lower-income people that is administered by the states. Idaho's lawyers say that in order to receive Medicaid funding, they are required only to comply with the Medicaid Act and related regulations.
In a December 2013 ruling, the 9th U.S. Circuit Court of Appeals said the providers could sue and ruled in their favor on the merits.
The ruling noted that state officials recommended increases in reimbursement rates in the late 2000s but they were never implemented because the Idaho legislature declined to appropriate funds.
A decision is due by the end of June.
The case is Armstrong v. Exceptional Child Center, U.S. Supreme Court, No. 14-15.
(Reporting by Lawrence Hurley; Editing by Will Dunham)