Federal COVID Mandates for Large Employers Loom as Recoupment Issues Linger in Courts

All employers with more than 100 employees will have to begin monitoring vaccination status next month, under the new regulations.

Starting Dec. 4, all employers with more than 100 employees (except those already covered under federal contractor and healthcare rules) must learn the vaccination status of all their employees. Those employees who are unvaccinated must provide a negative test result at least every seven days, and wear a face covering at work. The Occupational Safety and Health Administration (OSHA) published its emergency temporary standard (ETS) on this matter last week. Employers must comply with most provisions of the ETS by Dec. 4, and implement the testing requirements by Jan. 3, 2022.  

I am certain that this will face many legal challenges in the next few weeks, but I wanted to prepare you for contingencies. I anticipate that we will be receiving lots of questions about this over the next few days. 

Going to the topic of Recovery Audit Contractors (RACs), we need congressional action to protect providers from premature recoupment during the Medicare appeals process between levels 1 and 2. As we all know, appealing an alleged Medicare overpayment stays any premature and erroneous recoupment through levels 1 and 2. Level 3 is the administrative law judge (ALJ) level, and the first time you can present evidence and examine witnesses. In order to prevent recoupment between levels 2 and 3, providers must file injunctions enjoining the recoupment. The argument is that irreparable harm will occur by recouping, say, $7 million, and that the audit is faulty. Across the country, the courts are split as to whether to prevent premature recoupment. Until this new case, the 5th Circuit was on the provider’s side, saying you cannot recoup funds until you prove they are owed. There is a 90-percent overturn rate at the ALJ level.

In the newest case, Family Innovations underwent a scathing Unified Program Integrity Contractor (UPIC) audit. It was accused of owing over $7 million. The company provides home healthcare to Medicare patients in Texas. The accusation is that the clients were not “homebound,” which is false. The company’s legal team was successful at obtaining an injunction at the Superior Court level, but a couple weeks ago, the 5th Circuit overturned the lower court ruling and recoupment began.

The 5th Circuit took the opposite position in 2018 in Family Rehab., Inc. v. Azar. In that case, the Court went so far as to call the Medicare provider appeal process “the harrowing labyrinth of Medicare appeals.” That panel understood the sheer mess of an appeals process we have for providers, and that Medicare providers have a protected property interest in reimbursements for services rendered. The 5th Circuit itself is split on the issue of a property interest, and so too are the other circuit courts across the country. The 4th Circuit upholds the property interest. We either need a Supreme Court decision on the issue or congressional action. Right now, the issue is a ping-pong ball challenge.

Programming Note: Listen to Knicole Emanuel’s live RAC Report every Monday on Monitor Mondays, 10 Eastern.

Facebook
Twitter
LinkedIn

Knicole C. Emanuel Esq.

For more than 20 years, Knicole has maintained a health care litigation practice, concentrating on Medicare and Medicaid litigation, health care regulatory compliance, administrative law and regulatory law. Knicole has tried over 2,000 administrative cases in over 30 states and has appeared before multiple states’ medical boards. She has successfully obtained federal injunctions in numerous states, which allowed health care providers to remain in business despite the state or federal laws allegations of health care fraud, abhorrent billings, and data mining. Across the country, Knicole frequently lectures on health care law, the impact of the Affordable Care Act and regulatory compliance for providers, including physicians, home health and hospice, dentists, chiropractors, hospitals and durable medical equipment providers. Knicole is partner at Nelson Mullins and a member of the RACmonitor editorial board and a popular panelist on Monitor Monday.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Trending News

Featured Webcasts

Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules – Part 2

Medicare regulations are complex and even seasoned professionals struggle to apply them consistently. Due to overwhelming demand, Dr. Hirsch returns for Part 2 of Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules to answer even more of Medicare’s most misunderstood questions, covering inpatient status, observation, SNF access, Medicare Advantage denials, and more. Join Dr. Hirsch as he provides clear, referenced answers to real-world questions submitted by your peers, helping you navigate Medicare compliance with confidence and clarity.

June 18, 2026

Reengineering Utilization Management: Building an Adaptive Model for the New Payer Era

Traditional utilization management models can no longer keep pace with regulatory shifts, payer scrutiny, and operational pressures. In this webcast, Tiffany Ferguson, LMSW, CMAC, ACM, ACPA-C, introduces an Adaptive Model strategy that modernizes UM through role specialization, technology-driven workflows, and proactive, team-based processes. Attendees will learn how to restructure programs to improve efficiency, strengthen clinical collaboration, and enhance financial performance in a rapidly changing healthcare environment.

May 20, 2026

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

Trending News

Celebrate Lab Week with MedLearn! Sign up to win one year of our Laboratory All Access Pass! Click here to learn more →

Have a Medicare regulation question you’d love Dr. Hirsch to answer? Now is your chance! CLICK HERE to learn more→

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

This Memorial Day, we honor those who gave all for our freedom. Take 20% off sitewide through May 29 with code MEMORIAL26 at checkout

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24