The U.S. Court of Appeals for the Second Circuit, in a first-of-its-kind decision Tuesday, opened the door for health care organizations to sue in federal court over government rule-making that could violate the Medicaid Act.

A unanimous three-judge panel of the Manhattan-based appeals court found that the Medicare Act’s procedural provisions, which funnel most, if not all, challenges to U.S. Health and Human Services Department rules through a special administrative review system, do not apply to claims arising independently under the Medicaid Act.