Federal Preemption – Healthcare

cassiejohnson//July 10, 2015//

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The Court of Appeals was asked to decide whether the State of Minnesota may, without encroaching on federal law, assess and collect a surcharge on the revenues that Minnesota hospitals receive for providing health-care services to persons who are insured by group health-insurance plans that cover employees of the federal government. The Court of Appeals held that Minn. Stat. sec. 256.9657, subd. 2, which directs the Minnesota Department of Human Services to assess and collect from hospitals a 1.56-percent surcharge on net patient revenues, was not preempted by the Federal Employee Health Benefits Act or by the federal statute authorizing the TRICARE program. Affirmed.

A14-1462 In re Consolidated Hosp. Surcharge Appeals of Gillette Children’s Specialty Healthcare (Minn. Dep’t of Human Servs.)

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