On Tuesday, the U.S. Court of Appeals for the Fifth Circuit
approved the parties' stipulated agreement to stay enforcement
of the district court decision in Braidwood Management Inc. v.
Becerra until the appeal is resolved (with a limited exception for
the named plaintiffs). As readers will recall from our prior blog,
in Braidwood, a district court had enjoined enforcement of the
preventive services mandate for "A" or "B"
items and services recommended by the United States Preventive
Services Task Force ("USPSTF") on or after March 23,
2010. If the district court decision stands, non-grandfathered
health plans would not have to cover those particular preventive
services without cost-sharing. As both parties appealed the
district court's ruling, health plan sponsors had questioned
whether enforcement of the district court's order would be
stayed while the appeal proceeded in the Fifth Circuit. Although
the Fifth Circuit previously issued a temporary administrative stay
of the district court decision, the court's order on Tuesday
confirms that the stay will remain in place until the Fifth Circuit
reaches a decision on the merits of the appeal. Next steps for
health plan sponsors and employers: As a result of the stay,
non-grandfathered health plans will remain subject to the
pre-Braidwood preventive services mandate until the appeal is
resolved, as well as all other preventive care requirements. Plan
sponsors considering changes to their preventive services coverage
will need to sit tight until a final decision on the merits is
released by the Fifth Circuit, which is expected to happen later
this year.
Fifth Circuit Stay Means Preventive Services Mandate Remains in Effect
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