[2] This decision underwent a notice-and-comment period in 2013, but the Department of Health and Human Services attempted to apply its interpretation retroactively to 2012.

[citation needed] Under the Social Security Act, a notice-and-comment period is required for a "rule, requirement or statement of policy" that establishes or changes a "substantive legal standard governing the scope of benefits, the payment for services, or the eligibility of individuals, entities, or organizations to furnish or receive services or benefits."

"[2] After this new payment schedule was published, a group of hospitals sued the government, claiming that the change had not properly undergone a notice-and-comment period.

[5][3] The United States Court of Appeals for the District of Columbia Circuit reversed, ruling in favor of the hospitals on the basis that the new payment schedule amounted to a "statement of policy" that required the notice-and-comment period specified by the Social Security Act.

Writing for the Court, Justice Gorsuch found that the department's decision rose to the level of changing a "substantive legal standard" within the meaning of the Social Security Act.