Anniken Prosser v. Xavier Becerra
2 F.4th 708
7th Cir.2021Background
- Anniken Prosser, a Medicare Part B beneficiary, uses tumor treating fields (TTF) therapy (Novocure’s Optune) to treat glioblastoma and files Medicare claims every 3–4 months for device rental.
- A local coverage determination (LCD L34823) in effect during the relevant period denied Medicare coverage for TTF therapy performed on or after Oct. 1, 2015; CMS later revised the LCD in Sept. 2019 to cover TTF for glioblastoma.
- Prosser exhausted Medicare’s multi-tier administrative appeals for each claim; she obtained some favorable decisions but an ALJ in June 2019 denied coverage for the Jan–Apr 2018 period.
- Novocure was left with the bill for the denied period because it had not obtained an Advance Beneficiary Notice or the separate written device-supplier patient agreement that would shift liability to Prosser.
- Prosser sued in federal court seeking relief to bind future coverage decisions to prior favorable ALJ rulings; the district court ruled she lacked Article III standing because she incurred no financial injury and continued to receive therapy.
- The Seventh Circuit affirmed for lack of jurisdiction: Prosser suffered no concrete, imminent injury from the past denial, and any future exposure is speculative (especially after the Sept. 2019 LCD revision).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III standing — injury-in-fact | Prosser says denial of coverage for Jan–Apr 2018 infringes her statutory right to Medicare payment and thus constitutes concrete injury. | Secretary says Prosser suffered no financial or other concrete injury: she received the therapy at no cost and Novocure absorbed the bill. | No standing: no concrete, particularized injury; dismissal affirmed. |
| Whether an ALJ coverage decision binds future coverage decisions | Prosser contends prior favorable ALJ rulings should bind future Medicare coverage determinations so she need not re-litigate each claim. | Secretary contends ALJ decisions are case-specific, nonprecedential, and do not have preclusive effect. | Court did not reach merits because of lack of jurisdiction, but district court previously held ALJ decisions are nonprecedential. |
| Alleged loss of one-time liability protection (§ 1395pp) or future risk of liability | Prosser argues denial eliminated her one-time protection and exposes her to future financial liability. | Secretary and record show Novocure bore the cost (no ABN or written device agreement), and future liability is speculative. | Loss of §1395pp protection did not show a present concrete injury; future risk too attenuated/speculative for standing. |
Key Cases Cited
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (standing requires concrete, particularized, and imminent injury)
- Spokeo, Inc. v. Robins, 578 U.S. 330 (a statutory right alone does not automatically satisfy Article III injury-in-fact)
- Thole v. U.S. Bank N.A., 140 S. Ct. 1615 (plaintiffs lacked standing where relief would not change their economic position)
- Clapper v. Amnesty Int’l USA, 568 U.S. 398 (threatened injury must be certainly impending; speculative harms insufficient)
- Dep’t of Commerce v. New York, 139 S. Ct. 2551 (imminence requires substantial risk of harm)
- Whitmore v. Arkansas, 495 U.S. 149 (imminence and concreteness standards for standing)
- Sweeney v. Raoul, 990 F.3d 555 (7th Cir. standing doctrine summary)
- Casillas v. Madison Ave. Assoc., Inc., 926 F.3d 329 (Congress can elevate intangible harms but plaintiff still needs concrete injury)
