Hoven said CMS needs to cut its losses and move in another direction. "We will continue to work with stakeholders to rescind the Two Midnight policy and pursue alternative workable solutions," she said.
On Feb. 20, the AMA and seven other medical societies filed an amicus brief in a case before the Second Circuit of the US Court of Appeals pitting a half dozen Medicare beneficiaries against HHS Secretary Kathleen Sebelius.
In the filing, the medical societies assert that they are "concerned that those patients covered under the Medicare Program should receive the benefits to which they are legally entitled and that those patients do not suffer financial hardship on account of arbitrary administrative decisions."
The legal brief claims that the Two-Midnight Rule imposes an unfair burden on Medicare beneficiaries. "The refusal by HHS to afford the plaintiffs the benefits that come with inpatient status led many of them to substantial medical and financial hardships," the medical societies state. "The financial losses for each of the [Medicare beneficiaries] ranged from $4,000 to $30,000."