Kennedy v. Braidwood Management, Inc.

Procedural entryThis page is a short order in Kennedy v. Braidwood Management, Inc.. Read the opinion of the Court — 606 U.S. 748
Supreme Court of the United States·Decided June 27, 2025·No. 24-316·Published

Opinion

(Slip Opinion) OCTOBER TERM, 2024 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

KENNEDY, SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL. v. BRAIDWOOD MANAGEMENT, INC., ET AL.

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

No. 24–316. Argued April 21, 2025—Decided June 27, 2025

In 1984, the Department of Health and Human Services (HHS) created the U. S. Preventive Services Task Force, a body that formulates evi- dence-based recommendations regarding preventive healthcare ser- vices. Congress codified the Task Force’s role in 1999, establishing it as an entity within the Agency for Healthcare Research and Quality (AHRQ) in HHS’s Public Health Service. The Task Force currently consists of 16 volunteer members appointed by the Secretary of HHS to staggered 4-year terms. Before 2010, Task Force recommendations were purely advisory. The Affordable Care Act of 2010 changed this by requiring most health insurers and group health plans to cover without cost sharing those preventive services that receive “A” or “B” ratings from the Task Force. The Act also amended the governing stat- ute to describe the Task Force as “independent” and to provide that members and their recommendations “shall be independent and, to the extent practicable, not subject to political pressure.” 42 U. S. C. §§299b–4(a)(1), (6). Plaintiffs, individuals and small businesses who object to the Afford- able Care Act’s preventive-services coverage requirements, sued in fed- eral court. Lead plaintiff Braidwood Management runs a health and wellness center offering insurance coverage to its approximately 70 employees through a self-insured plan. Plaintiffs argued that Task Force members are principal officers under the Appointments Clause who must be appointed by the President “with the Advice and Consent of the Senate,” Art. II, §2, cl. 2, not by the Secretary. The District 2 KENNEDY v. BRAIDWOOD MANAGEMENT, INC.

Court agreed, recognizing that Task Force members are removable at will by the Secretary but concluding they are principal officers because they “have no superior” who supervises and directs them. 627 F. Supp. 3d 624, 646. While the Government’s appeal was pending, the Secretary in June 2023 ratified existing appointments made by the AHRQ Director and began personally appointing Task Force members. The Fifth Circuit affirmed the District Court, holding that while Task Force members are removable at will, they are not inferior officers be- cause they cannot be “ ‘independent’ ” and “free from ‘political pres- sure’ ” while simultaneously being supervised by a political appointee. 104 F. 4th 930, 944. Held: Task Force members are inferior officers whose appointment by the Secretary of HHS is consistent with the Appointments Clause. Pp. 7–43. (a) The Appointments Clause in Article II specifies how “Officers of the United States” must be appointed, dividing all officers into two classes. Principal officers must be appointed by the President “with the Advice and Consent of the Senate.” Inferior officers likewise may be appointed by Presidential nomination and Senate confirmation, but Congress may also “by Law vest” their appointment “in the President alone, in the Courts of Law, or in the Heads of Departments.” Art. II, §2, cl. 2. Principal officers encompass at least department heads who report directly to the President. Inferior officers are those “whose work is directed and supervised at some level by others who were appointed by Presidential nomination with the advice and consent of the Senate.” Edmond v. United States, 520 U. S. 651, 663. Pp. 7–9. (b) Task Force members are inferior officers because their work is “directed and supervised” by the Secretary of HHS, a principal officer, through two main sources of authority. Pp. 9–16. (1) The Secretary’s authority to remove Task Force members at will provides a “powerful tool for control.” Edmond, 520 U. S., at 664. An officer’s “ ‘presumed desire to avoid removal’ ” generally creates “ ‘here-and-now subservience.’ ” Bowsher v. Synar, 478 U. S. 714, 727, n. 5. Here, the Secretary has power to appoint Task Force members, and no statute restricts their removal. Therefore, the Secretary may remove Task Force members at will, enabling him to supervise and direct them. Pp. 10–13. (2) Beyond at-will removal, the Secretary has statutory authority to directly review and block Task Force recommendations before they take effect. Several statutes give the Secretary general supervisory authority over the Public Health Service, within which the Task Force is housed, as well as rulemaking authority with respect to the Afford- able Care Act’s coverage provisions. See 42 U. S. C. §§202, 300gg–92; Cite as: 606 U. S. ____ (2025) 3

Reorganization Plan No. 3 of 1966; 98 Stat. 2705. During the mini- mum 1-year interval before recommendations become binding, the Secretary can use his supervisory authority to direct that Task Force recommendations he disagrees with not be “in effect” and therefore not be binding, or he can establish formal review processes through rule- making. §300gg–13(a)(1). Task Force members therefore “have no power to render a final decision on behalf of the United States unless permitted to do so by” the Secretary. Edmond, 520 U. S., at 665. Pp. 13–16. (c) The conclusion that Task Force members are inferior officers fol- lows a fortiori from this Court’s precedents. In Edmond, Coast Guard judges who were removable at will and whose decisions could be re- viewed and reversed were deemed inferior officers, even though supe- riors could not influence individual proceedings. Like those judges, Task Force members are removable at will and their decisions can be reviewed and overruled by the Secretary. In Free Enterprise Fund v. Public Company Accounting Oversight Bd., 561 U. S. 477, PCAOB members removable at will by the SEC were inferior officers, even though they were “empowered to take significant enforcement actions . . . largely independently of the Commission.” Id., at 504. In Arthrex, Administrative Patent Judges whose decisions were reviewable but who were removable only for cause were inferior officers. If patent judges subject only to review authority were inferior officers, Task Force members subject to both at-will removal and review authority are clearly inferior officers. Pp. 16–18. (d) Braidwood’s arguments against inferior-officer status fail. Pp. 18–27. (1) The independence provision in §299b–4(a)(6) stating that Task Force members shall be “independent and, to the extent practicable, not subject to political pressure” does not create for-cause removal pro- tection. To displace the default of at-will removal, Congress must use “very clear and explicit language”—“mere inference or implication” does not suffice. Shurtleff v. United States, 189 U. S. 311, 315. The term “independent” alone does not make an officer removable only for cause, as this Court held in Collins v. Yellen, 594 U. S. 220. Pp. 18– 20. (2) Braidwood claims that 42 U. S. C.

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