The named defendant was the Secretary of Health and Human Services. The suit was over practices followed by Medicare contractors, but it's not like they were operating outside the knowledge of Medicare, they were acting as Medicare had directed them to act. The settlement agreement has Medicare changing the procedures the contractors will follow.
Except the very first paragraph states that the reason for the suit was that the contractors were not appropriately following Medicare guidelines.
"...in which the plaintiffs alleged that Medicare contractors
were inappropriately applying an “Improvement Standard” in making claims determinations for
Medicare coverage involving skilled care..."
https://www.cms.gov/medicare/medicare-fee-for-service-paymen...