Bloom v. Azar

976 F.3d 157
Court of Appeals for the Second Circuit·Decided September 23, 2020·No. 18-2390·Published·Cited by 3 cases

Opinion

18-2390 Bloom v. Azar

1 UNITED STATES COURT OF APPEALS 2 FOR THE SECOND CIRCUIT 3 4 August Term, 2019 5 6 (Argued: October 7, 2019 Decided: September 23, 2020) 7 8 Docket No. 18-2390-cv 9 10 _____________________________________ 11 12 JONATHAN A. BLOOM, 13 14 Plaintiff-Appellant, 15 16 v. 17 18 ALEX AZAR, SECRETARY, UNITED STATES DEPARTMENT OF 19 HEALTH AND HUMAN SERVICES, 20 21 Defendant-Appellee. * 22 _____________________________________ 23 24 Before: 25 26 LIVINGSTON, Chief Judge, LEVAL and LOHIER, Circuit Judges. 27 28 Jonathan A. Bloom requested Medicare coverage to offset the costs 29 associated with a device that he uses to treat his diabetes. The Medicare 30 Appeals Council rejected three of Bloom’s requests. When Bloom sought 31 judicial review of the Appeals Council’s adverse decisions, the United States 32 District Court for the District of Vermont (Crawford, C.J.) dismissed Bloom’s 33 suit in part on the ground that the amounts involved in the challenged 34 decisions fell below the amount-in-controversy requirement upon which the 35 Medicare Act conditions judicial review, and that Bloom could not 36 “aggregate[]” those amounts to cure that jurisdictional deficiency. 42 U.S.C.

* The Clerk of Court is directed to amend the caption as set forth above.

1 § 1395ff(b)(1)(E)(ii). We VACATE the District Court’s judgment and 2 REMAND for proceedings consistent with this opinion. 3 4 JAMES PISTORINO (Debra M. Parrish, on the brief), 5 Parrish Law Offices, Pittsburgh, PA, (Craig S. Nolan, 6 Alexandrea L. Nelson, on the brief), Sheehey Furlong 7 & Behm P.C., Burlington, VT, for Plaintiff-Appellant 8 Jonathan A. Bloom. 9 10 MELISSA A.D. RANALDO, Assistant United States 11 Attorney (Gregory L. Waples, Assistant United 12 States Attorney, on the brief), for Christina E. Nolan, 13 United States Attorney for the District of Vermont, 14 Burlington, VT, for Defendant-Appellee Alex Azar, 15 Secretary, United States Department of Health and 16 Human Services. 17 18 LOHIER, Circuit Judge:

19 Jonathan A. Bloom is a Medicare beneficiary who uses a Continuous 20 Glucose Monitoring device (CGM) to manage his Type I diabetes. Since 2011 21 Bloom has regularly sought Medicare coverage to offset the costs associated 22 with his CGM. Three times between 2015 and 2017, the Medicare Appeals 23 Council rejected Bloom’s requests for coverage. Bloom challenged the 24 Appeals Council’s adverse decisions in federal court, but the United States 25 District Court for the District of Vermont (Crawford, C.J.) dismissed Bloom’s 26 suit in part. It concluded that two of the three challenged decisions failed to 27 meet the $1,500 amount-in-controversy threshold for federal court jurisdiction 28 under the Medicare Act. It also held that the Medicare Act did not permit

1 Bloom to cure the jurisdictional deficiency by “aggregat[ing]” the three 2 separate amounts at issue in each decision. 42 U.S.C. § 1395ff(b)(1)(E)(ii). The 3 question before us is whether the District Court erred in refusing to let Bloom 4 aggregate his claims to satisfy the Act’s amount-in-controversy requirement. 5 For the reasons below, we VACATE the District Court’s judgment and 6 REMAND for proceedings consistent with this opinion. 7 BACKGROUND 8 I 9 Jonathan Bloom has been suffering from Type I diabetes for several 10 decades. Bloom’s diabetes is currently “brittle”—that is, particularly acute— 11 which means that his blood-glucose levels fluctuate “rapidly” every day, 12 sometimes even “unpredictably.” Appellant’s App’x 179. And unlike the 13 many diabetics who can tell when their blood sugar is too low, Bloom suffers 14 from “hypoglycemic unawareness,” a condition that makes it is “impossible” 15 for him “to detect when he is experiencing [] unexpected[ly] low” blood 16 sugar. Id. As a result, Bloom has fallen unconscious into a diabetic coma on 17 three separate occasions, two of which were “life threatening.” Special App’x 18 4.

1 Since 2006 Bloom has attempted to better manage his diabetes by using 2 a CGM—essentially a tiny sensor that he inserts just under his skin to actively 3 monitor his blood-glucose levels. The CGM evaluates Bloom’s blood sugar 4 every five minutes, and “warn[s] him of drops in glucose that would lead to 5 [further bouts of] unconsciousness.” Supp. App’x 87. The device “has 6 markedly improved [Bloom’s] . . . quality of life and overall safety.” Special 7 App’x 4. 8 Bloom sought Medicare coverage for his CGM at least thirteen separate 9 times. On three occasions, the Appeals Council denied Bloom’s requests for 10 coverage. First, in a decision dated November 13, 2015 (the M-15-1505 11 decision), the Appeals Council denied Bloom coverage for a thirty-day supply 12 of disposable CGM sensors valued at $473. Second, in a decision dated 13 February 24, 2016 (the M-15-4332 decision), the Appeals Council denied 14 Bloom’s claim for coverage of a CGM transmitter and two sets of disposable 15 CGM sensors, which cost a total of $1,976. Finally, in a decision dated 16 January 27, 2017 (the M-16-10554 decision), the Appeals Council denied 17 Bloom coverage for a ninety-day supply of disposable CGM sensors, totaling 18 $1,419. With respect to each denial, the Appeals Council concluded that

1 Bloom’s CGM was “precautionary” in nature and thus failed to serve a 2 “primary medical purpose.” Appellant’s App’x 73 (M-15-4332 decision), 185 3 (M-15-1505 decision), 270 (M-16-10554 decision). 4 II 5 In 2016 Bloom filed this lawsuit against the agency responsible for 6 overseeing the Appeals Council, the Department of Health and Human 7 Services (HHS), to challenge the three decisions denying coverage. See 8 generally 42 U.S.C. §§ 1395ff(b)(1)(A), 1395ii, 405(g), 405(h). Bloom and HHS 9 each eventually moved for judgment based on the pleadings and the 10 administrative records. As relevant here, the District Court granted HHS’s 11 motion in part, concluding that it lacked jurisdiction to review the M-15-1505 12 and M-16-10554 decisions because the dollar amounts at issue in each of those 13 decisions fell below the amount-in-controversy requirement upon which the 14 Medicare Act conditions judicial review. The District Court also concluded 15 that Bloom could not “aggregate[]” the amounts at issue in each decision to 16 satisfy the amount-in-controversy threshold and cure the jurisdictional 17 deficiency. Id. § 1395ff(b)(1)(E)(ii). 18 This appeal followed.

1 DISCUSSION 2 I 3 At issue in this appeal are the Appeals Council’s M-15-1505 and M-16- 4 10554 decisions denying Bloom’s claims. There is no dispute that these 5 decisions present common questions of law and fact. Bloom argues that the 6 District Court had jurisdiction under 42 U.S.C. § 1395ff(b)(1)(E)(i) to review 7 his challenges to those decisions because the aggregated amount of those 8 claims indisputably exceeded $1,500. On de novo review, we agree. See 9 United States v. Williams, 733 F.3d 448, 452 (2d Cir. 2013). 10 A 11 We begin with the language of the Medicare Act, which contains two 12 provisions that are directly relevant to our resolution of this appeal. 13 The first provision states that “[a] hearing . . . shall not be available to 14 an individual . . . if the amount in controversy is less than $100, and judicial 15 review shall not be available to the individual if the amount in controversy is 16 less than $1,000.” 42 U.S.C. § 1395ff(b)(1)(E)(i). The $1,000 amount in 17 controversy is annually adjusted for inflation and was at set at $1,500 in 2016, 18 the year in which Bloom sought judicial review. See Medicare Program;

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