Walsh v. McGee

899 F. Supp. 1232, 1995 U.S. Dist. LEXIS 14830, 1995 WL 600855
CourtDistrict Court, S.D. New York
DecidedOctober 11, 1995
Docket89 Civ. 1310 (DNE)
StatusPublished
Cited by9 cases

This text of 899 F. Supp. 1232 (Walsh v. McGee) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walsh v. McGee, 899 F. Supp. 1232, 1995 U.S. Dist. LEXIS 14830, 1995 WL 600855 (S.D.N.Y. 1995).

Opinion

OPINION & ORDER

EDELSTEIN, District Judge:

This case arises under the Medicare Act, (“Medicare” or “the Act”), Title XVIII of the Social Security Act, 42 U.S.C.S. §§ 1395-1395cee. Plaintiffs, Medicare Part B claimants, allege that defendants, Medicare Part B administrators, wrongly underpaid plaintiffs’ Medicare claims, mishandled plaintiffs’ appeals of these claims, and, consequently, violated plaintiffs’ procedural due process rights under the Fifth Amendment to the United States Constitution. As relief, plaintiffs seek: (1) injunctive relief to prevent defendants’ alleged misconduct with respect to Medicare Part B appeals; (2) a declaratory judgment that defendants’ actions were unlawful and violated plaintiffs constitutional due process rights; and (3) a writ of mandamus directing the defendants who are hearing officers to vacate and set aside their decisions regarding plaintiffs’ Medicare claims and to conduct new hearings on these claims. In response, Defendants contend: (1) that this Court lacks subject matter jurisdiction over plaintiffs’ claims; (2) plaintiffs’ claims do not present justiciable constitutional issues; and (3) plaintiffs fail to meet the prerequisites for the issuance of a writ of mandamus.

Currently before the Court are plaintiffs’ and defendants’ respective motions for summary judgment, pursuant to Federal Rule of Civil Procedure (“Rule”) 56(b), as well as defendants’ motion to dismiss for lack of subject matter jurisdiction, pursuant to Rule 12(b)(1). Because this Court lacks subject matter jurisdiction over plaintiffs’ claims, defendants’ Rule 12(b)(1) motion is granted. Moreover, because this Court lacks subject matter jurisdiction, plaintiffs’ motion for a writ of mandamus is dismissed.

BACKGROUND

Medicare establishes programs to provide medical benefits for the aged and disabled. It consists of two separate plans. Medicare Part A establishes major medical insurance coverage for hospital care and related post-hospital services and is funded by Social Security taxes. 42 U.S.C. §§ 1395c-i. Part B creates a voluntary program of supplementary medical insurance for persons who are disabled or over sixty five years of age. 42 U.S.C. §§ 1395j-w. This action solely concerns Part B.

Part B is analogous to a private medical insurance program subsidized by the federal government. Enrolled individuals pay monthly premiums that, together with contributions from the federal government, 42 U.S.C. §§ 1395r, 1395t, 1395w, secure coverage for the reasonable cost of specified medical services that are excluded from Part A, such as physician services, out-patient therapy, medical equipment, and laboratory testing. 42 U.S.C. § 13951; 42 C.F.R. § 405.231. The Secretary of Health and Human Services (“HHS”) contracts with private insurance carriers to process Part B claims, 42 U.S.C. § 1395u, in order to profit from their “great experience,” S.Rep. No. 404, 89th Cong., 1st Sess., reprinted in 1965 U.S.C.C.A.N., 1993, and thereby administer the program “with maximum efficiency and convenience.” 42 U.S.C. § 1395u(a). *1235 Schweiker v. McClure, 456 U.S. 188, 190, 102 S.Ct. 1665, 1667, 72 L.Ed.2d 1 (1982); Isaacs v. Bowen, 865 F.2d 468, 470 (2d Cir.1989).

The Medicare Act sets forth the procedures private insurance carriers must use to process Part B claims. These procedures direct a Part B enrollee to submit claims for services directly to the carrier in the enroll-ee’s geographic area. The carrier then reviews the claim to determine whether the medical service at issue is within the scope of Part B, whether it was “reasonable and necessary” under the circumstances, and whether its cost was “reasonable.” 42 U.S.C. §§ 1395u(b)(3), 1395y(a); 42 C.F.R. §§ 405.501, 421.200. While the Act instructs carriers to consider specific criteria in making these determinations, a carrier may take into account additional factors that it deems necessary to its evaluation. 42 C.F.R. § 405.502(a)(7). If a carrier finds that the claim meets all coverage criteria, it pays enrollee’s benefits from federal funds according to Medicare guidelines. 42 U.S.C. § 1395u. In the event an enrollee disputes a carrier’s reimbursement determination, Part B details procedures he can use to challenge it. 42 U.S.C. § 1395ff. Specific provisions of the Medicare Act govern reimbursement disputes concerning Part B services rendered prior to January 1, 1987. 42 U.S.C. §§ 1935u(b)(3)(C), 1395ff, 1395Ü. Under these provisions, a claimant who is dissatisfied with a carrier’s initial disposition of his claim is entitled to de novo review of the claim by the carrier. 42 C.F.R. §§ 405.807-812. In addition, if the amount in controversy exceeds $100, the claimant is entitled to a “fair hearing” before an officer chosen by the carrier. 42 U.S.C. § 1395u(b)(3)(C); 42 C.F.R. §§ 405.801, .820; McClure, 456 U.S. at 191, 102 S.Ct. at 1668. Fair hearing officers must evaluate each claim in accordance with the Medicare Act, HHS regulations, and the Health Care Finance Administration’s (“HCFA”) policy statements. 42 C.F.R. § 405.860. The HCFA’s Medicare Carrier’s Manual (“MCM”) provides the primary procedural guidelines for fair hearings.

Decisions rendered by fair hearing officers . are final and binding. 42 C.F.R. § 405.835. The Medicare statute explicitly precludes judicial review of fair hearing officers’ decisions regarding the amount of benefits due a claimant under Part B. 42 U.S.C. § 1395i

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Cite This Page — Counsel Stack

Bluebook (online)
899 F. Supp. 1232, 1995 U.S. Dist. LEXIS 14830, 1995 WL 600855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walsh-v-mcgee-nysd-1995.