Alley v. U.S. Department of Health & Human Services

590 F.3d 1195, 2009 U.S. App. LEXIS 27801, 2009 WL 4877935
CourtCourt of Appeals for the Eleventh Circuit
DecidedDecember 18, 2009
Docket08-16914
StatusPublished
Cited by37 cases

This text of 590 F.3d 1195 (Alley v. U.S. Department of Health & Human Services) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alley v. U.S. Department of Health & Human Services, 590 F.3d 1195, 2009 U.S. App. LEXIS 27801, 2009 WL 4877935 (11th Cir. 2009).

Opinion

CARNES, Circuit Judge:

Even if history does not repeat itself, events do sometimes rhyme. 1 The present national debate over health care rhymes a lot with one that took place three decades ago. 2 And the sound of some of the argu *1198 ments in this lawsuit echoes those heard in similar litigation that arose during the 1970s debate. That earlier litigation concerned a federal agency’s intent to release records of government payments to Medicare providers; on privacy grounds, the providers persuaded a district court to enjoin the release of those records. While its meter might not match our own, that decades-old decision and the injunction issued control the closing couplet of this case.

I.

The plaintiffs seek to compel the United States Department of Health and Human Services (HHS) to disclose certain records under the Freedom of Information Act, 5 U.S.C. § 552. HHS argues that complying with the plaintiffs’ FOIA request would violate an injunction issued in Florida Medical Ass’n v. Department of Health Education & Welfare, 479 F.Supp. 1291 (M.D.Fla.1979) (“FMA”). Under the rule of GTE Sylvania, Inc. v. Consumers Union of the United States, Inc., 445 U.S. 375, 384, 100 S.Ct. 1194, 1200, 63 L.Ed.2d 467 (1980), an agency that complies with a court order forbidding disclosure does not violate the FOIA. After dusting off the 1979 injunction from FMA, the district court construed it narrowly and decided that it does not cover the information the plaintiffs seek. If that were so, GTE Sylvania would not apply and the disclosure the district court ordered in this case might be required.

We believe, however, that the FMA injunction against disclosure does cover the information that the district court ordered HHS to disclose in this case. So long as that earlier injunction is in effect GTE Sylvania bars any court from ordering disclosure. While the plaintiffs are free to seek to have the old injunction modified or vacated, they may not do so collaterally in this case. That is the overview of the case and our decision. Now for the details.

A

We will get to the procedural facts of this case shortly, but it is helpful to begin with an explanation of the FMA case, which resulted in the 1979 injunction. The story of that case starts in March 1977 when the Secretary of the United States Department of Health, Education and Welfare (HEW), the agency then responsible for administering Medicare, made public a list of the physicians and groups of physicians who in 1975 received $100,000.00 or more in reimbursements for providing Medicare services. FMA 479 F.Supp. at 1297. The disclosure included the gross amount of reimbursements received by each provider. Id. The information was widely publicized in the news media, and “it was later determined that the information published was inaccurate in many ways.” Id. In November 1977 the Secretary directed various carriers to prepare and publish another list, this time of all providers paid Medicare reimbursements in 1977. Id. “The list was to include full names of the physicians and providers, their addresses, the net total amount of Medicare reimbursement paid [directly] ... to each physician or provider, and the net total amount of Medicare reimbursements paid to beneficiaries for ... services furnished by each physician or provider.” Id.

The Secretary was determined to have HEW do its best to ensure the accuracy of the information, but physician providers were not mollified. See id. In March 1978 the Florida Medical Association and six individual physicians, on behalf of all Florida physicians whose patients were Medicare beneficiaries in 1977, brought a class action suit in the Middle District of *1199 Florida to enjoin the scheduled disclosures. See Fla. Med. Ass’n, Inc. v. U.S. Dep’t of Health, Educ. & Welfare, 601 F.2d 199, 201 (5th Cir.1979) (reviewing that procedural history in an otherwise unrelated appeal).

The American Medical Association, whose membership at the time exceeded 200,000 licensed physicians, was allowed to intervene as a plaintiff in June 1978. FMA 479 F.Supp. at 1295. The court then recertified the class of plaintiffs to include all physicians licensed to practice in Florida and all members of the AMA, if they were providers of Medicare services and would be individually identified by the disclosure of annual Medicare reimbursement amounts. Id. at 1295-96.

The plaintiffs in that lawsuit claimed that the impending disclosures were not required by the FOIA and would violate the Privacy Act, 5 U.S.C. § 552a. They argued that various FOIA exemptions applied, the most important of which for present purposes is Exemption 6, which protects “personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.” 5 U.S.C. § 552(b)(6); see generally News-Press v. U.S. Dep’t of Homeland Sec., 489 F.3d 1173, 1190-91 (11th Cir.2007).

The district court first decided that the information the Secretary intended to disclose qualified as “similar files” under Exemption 6. See FMA 479 F.Supp. at 1303-04. It stated that “[cjourts must look past mere appearances and beneath labels, to the actual character and nature of the information in question,” id. (citing Dep’t of Air Force v. Rose, 425 U.S. 352, 374, 96 S.Ct. 1592, 1605, 48 L.Ed.2d 11 (1976)), and explained that the statutory term “similar files” means those containing information of a “personal quality and nature,” id. at 1304. The court reasoned that because personal financial information might cause embarrassment if publicly disclosed, the list of annual reimbursements to Medicare providers qualified as a “similar file” under Exemption 6. Id.

As required, the district court examined the competing public and private interests. It found, on the non-disclosure side of the scales, that the proposed disclosure “surely” would invade the personal privacy of providers. Id. at 1304. On the other side of the scales, the court recognized that the public unquestionably had a “legitimate and important interest” in knowing the amount of public funds spent in reimbursing Medicare providers annually, “especially in light of the ongoing legislative debate over national health insurance.” Id.

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590 F.3d 1195, 2009 U.S. App. LEXIS 27801, 2009 WL 4877935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alley-v-us-department-of-health-human-services-ca11-2009.