Power Mobility Coalition v. Leavitt

404 F. Supp. 2d 190, 2005 U.S. Dist. LEXIS 32236, 2005 WL 3388130
CourtDistrict Court, District of Columbia
DecidedOctober 25, 2005
Docket05 CV 2027 RBW
StatusPublished
Cited by45 cases

This text of 404 F. Supp. 2d 190 (Power Mobility Coalition v. Leavitt) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Power Mobility Coalition v. Leavitt, 404 F. Supp. 2d 190, 2005 U.S. Dist. LEXIS 32236, 2005 WL 3388130 (D.D.C. 2005).

Opinion

MEMORANDUM OPINION 1

WALTON, District Judge.

The plaintiff, Power Mobility Coalition (the “Coalition”), “is a national, non-profit association whose membership includes manufacturers and suppliers of motorized scooters and power wheelchairs.” Complaint for Declaratory and Injunctive Relief (“Compl.”) ¶ 4. On behalf of its memberships, the plaintiff request that this Court issue a preliminary injunction that would enjoin the enforcement of the new regulations promulgated by the Department of Health and Human Services (“HHS”) through its Interim Final Rule entitled Conditions for Payment of Power Mobility Devices, Including Power Wheelchairs and Power-Operated Vehicles, (“PMD payment rule”), 70 Fed.Reg. 50,-940, and adopted on August 26, 2005 (to be codified at 42 C.F.R. pt. 410). Plaintiffs Motion for Preliminary Injunctive Relief (“Pl.’s Mot.”), [D.E. # 3] at 1; Compl. at 1. The plaintiffs jurisdictional basis for filing this action in this Court are 28 U.S.C. §§ 1331, 1361, 2201-2202 (2000) and the Administrative Procedure Act, 5 U.S.C. §§ 701-706 (2000). Compl. at 2. The plaintiff alleges that the Interim Final Rule, which became effective on October 25, 2005, was issued without notice and the opportunity for comment, and -will radically change the procedures for obtaining reimbursement for motorized wheelchairs and scooters (known as power mobility devices or PMDs) under the Medicare program. Pl.’s Mot. at 1; Compl. at 2. The plaintiff also contends that the rule is arbitrary, capricious, and not in accordance with law in violation of the Administrative Procedure Act, 5 U.S.C. §§ 553, 706, and the Medicare Act, 42 U.S.C. §§ 1395hh(b), 1395(m)(j)(2) (2000). Compl. at 1-2.

Specifically, the plaintiff proclaims that “[ujnder current Medicare procedures, which reflect specific congressional direction, claimants submit a standardized form to HHS that contains information tailored to identify whether a beneficiary’s motorized wheelchair or scooter is reimbursable under the program.” Pl.’s Mot. at 1-2. However, according to the plaintiff, the new regulations eliminate this standardization approach and establish a highly discretionary, and much more costly system, in which the plaintiffs members are required to collect and review patients’ medical records to determine whether the records establish eligibility for the use of PMDs to the satisfaction of HHS. Id. at 2.

On the other hand, the defendants opine that “[t]he new rule is not defective because it has been first issued as an interim final rule with a comment period rather than as a notice of proposed rulemaking.” Defendants’ Memorandum in Opposition to Plaintiffs Motion for Preliminary Injunction (“Defs.’ Opp’n”) at 2-3. They contend that “[the rule] is exempt from the notice and comment requirements of the APA because portions of it merely conform *193 agency regulations to Congressional commands ____” Id. Moreover, argues the defendants, “the Secretary properly found that good cause justified issuing the balance, which is needed to combat fraud and protect the integrity of the Medicare program.” Id. at 3. In addition, the defendants’ contend that the “[plaintiffs claim that the rule is arbitrary and capricious is also meritless ... [because] the rule is entirely consistent with the Medicare Act.” Id. at 3.

For the reasons discussed below, the plaintiffs motion is denied.

1. Background

The Medicare Act was established under Title XVIII of the Social Security Act, 42 U.S.C. §§ 1395-1395hhh, and provides for the payment of covered medical care services, equipment, and supplies provided to eligible aged and disabled persons. Defs.’ Opp’n at 3. The statute consists of three main parts; however, this case involves only Part B, as the plaintiff is an association that represents durable medical equipment (“DME”) “suppliers.” Id. (citing 42 U.S.C. § 1395x(d); 42 C.F.R. § 400.202.). Part B of the Medicare Act provides supplementary medical insurance for covered medical services, such as doctors’ visits, diagnostic testing, and covered medical supplies, such as DME. Id. (citing 42 U.S.C. §§ 1395j to 1395w-4, 42 C.F.R. Part 410.) 2 In administering Part B, the Administrator of the Center for Medicare and Medicaid Services (“CMS”) acts through private fiscal agents called “carriers.” Id. at 1; 4 (citing 42 U.S.C. § 1395u; 42 C.F.R. Part 421, Subparts A and C, and 42 C.F.R. § 421.5(b)). Carriers are private entities, generally insurance companies, that contract with the Secretary of Health and Human Services (“the Secretary”) to perform a variety of functions, such as making coverage determinations in accordance with the Medicare Act, applicable regulations, the Medicare Part B Supplier Manual, the publicly available Program Integrity Manual (“PIM”), the regional Durable Medical Equipment Regional Carriers (“DMERCs,” “DMER carriers,” or “carriers”) manual, and other guidance materials. Id. Carriers also determine reimbursement rates and allowable payments, conduct audits of the claims submitted for payment, and adjust payments and payment requests. Id. Once a carrier receives a claim for services rendered, the carrier pays the Medicare beneficiary on the basis of an itemized bill, and pays the Medicare supplier based on an assignment of benefits executed by the beneficiary. Id. (citing 42 U.S.C. § 1395u(b)(3)(B)). These carrier functions are prescribed by regulation, ie., 42 C.F.R. § 421.200. Id. at 4. DMER carriers process claims for DME (including PMDs) payments within designated regions of the country. 3

As indicated, Part B coverage extends to DME products, including wheelchairs used in the patient’s “home,” which includes institutions other than hospitals or skilled nursing facilities. Id. at 7 (internal citations omitted).

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Bluebook (online)
404 F. Supp. 2d 190, 2005 U.S. Dist. LEXIS 32236, 2005 WL 3388130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/power-mobility-coalition-v-leavitt-dcd-2005.