Humana is suing the HHS over federal regulators’ plan to audit Medicare Advantage payments in the first legal challenge to the rule, which is an effort to claw back billions from health insurers.
The payer filed the lawsuit Friday in a Texas federal court, arguing the recently finalized rule is “arbitrary and capricious” and should be vacated.
Humana is the second largest provider of MA plans in the U.S. after UnitedHealth. Medicare premiums make up the lion’s share of Humana’s revenue, and the company refocused its business entirely on government plans earlier this year. As such, the payer would be heavily affected by the audits. Read more.