On Friday, the SG sent the attached letter to the Supreme Court in the pending litigation, Douglas v. ILC and consolidated cases. These cases address the availability of a claim under preemption to enjoin conflicts between federal and state law. The SG letter indicates that rate cuts of 10% have been approved by CMS, with California agreeing not to pursue recoupment of most of the funds that have been required by pending injunctions. CMS’s approval was based on California submitting additional evidence regarding access and committing to monitor access following the implementation of the rate cuts. This could moot out the pending Supreme Court litigation, though the issue of whether a claim for preemption is permissible is certainly capable of repetition.