The Iowa Supreme Court has affirmed a lower court's decision to let nursing homes in the state file certain costs for Medicaid reimbursement expenses.
The court's decision Friday affirms an earlier ruling by the Court of Appeals that says nine long-term facilities can be reimbursed for Medicaid costs that include expenses incurred for services that use Medicare for payment. The services at issue were prescription drugs, X-rays and lab work.
The state Department of Human Services had argued these Medicare costs in Medicaid reimbursement expenses would result in "double-counting." The facilities shot back that DHS regulations require the inclusion of these costs.
The agency's director eventually said the costs would not be allowed in the expense reports. A district court agreed, but the appeals court reversed it.