On July 30, 2009, the Sixth Circuit Court of Appeals ruled against a group of hospitals that had challenged the application of Medicare's 70 percent bad debt reimbursement policy to bad debts stemming from individuals who are eligible for both Medicare and Medicaid (QMBs). See Detroit Receiving Hospital, et al. v. Sebelius, Case. No. 08-1920 (Sixth Cir. 2009). The Medicare program reimburses hospitals for 70 percent of the bad debts they incur relating to unpaid beneficiary deductible and copayment amounts. Generally, when a beneficiary is eligible for both Medicare and Medicaid, Medicaid covers the beneficiary's Medicare copayment and deductible responsibilities. However, state Medicaid programs, such as in Michigan and Missouri, impose caps on Medicaid payments; as a result, the copayments and deductible amounts for QMBs may go unpaid. The Medicaid statute prevents hospitals from seeking these unpaid amounts from the QMBs. Therefore, a number of hospitals located in states with caps on Medicaid payments found that they were left with unpaid and unrecoverable bad debts. The hospitals, which are located in Michigan and Missouri, challenged Medicare's bad debt reimbursement scheme, arguing that the scheme violates Medicare's cross-subsidization ban (the notion that the costs of providing care for Medicare beneficiaries shall not be borne by non-Medicare beneficiaries). However, the Sixth Circuit ruled against the hospitals, reasoning that because the 70 percent reimbursement rate for bad debts is set by statute, and because the statute setting the rates is more recent and more specific than the statute containing the ban on cross-subsidization, the current bad debt reimbursement scheme is permissible, even with respect to QMBs in states that cap Medicaid payments.