Wells says Humana suit challenging RADV rule successful, should allay concerns

Wells Fargo notes that Humana’s (HUM) lawsuit challenging Medicare Advantage RADV rule was successful on procedural grounds, as the Northern District Court of TX found that the Final Rule is procedurally invalid as it was not a “logical outgrowth” of the Proposed Rule. The issue had been back in greater focus following CMS announcement on significant expansion of audits. Wells points out that it is unclear whether it is truly a settled issue, but it should help to allay immediate concerns.