976 F.3d 157
2d Cir.2020Background
- Jonathan Bloom, a Medicare beneficiary with brittle Type I diabetes and hypoglycemic unawareness, uses a Continuous Glucose Monitoring (CGM) device to avoid life‑threatening hypoglycemia.
- Bloom sought Medicare coverage repeatedly; the Medicare Appeals Council denied three claims: $473 (30‑day sensors), $1,976 (transmitter + sensors), and $1,419 (90‑day sensors).
- Bloom sued to review the adverse Appeals Council decisions; the District Court held it lacked jurisdiction over the $473 and $1,419 denials because each was below the then $1,500 amount‑in‑controversy threshold and refused to allow aggregation of the claims.
- The core statutory provision is 42 U.S.C. § 1395ff(b)(1)(E)(ii), which directs the Secretary to allow aggregation of two or more appeals involving similar/related services to the same individual by one or more providers when determining amount in controversy.
- The Second Circuit vacated and remanded, holding that the Medicare Act permits a plaintiff to aggregate qualifying claims in district court to meet the amount‑in‑controversy requirement, relying on the statute’s text plus regulatory and legislative history.
- The Court noted limits: exhaustion (claims must have been finally decided administratively), regulatory timing rules constrain how many claims may be aggregated, and HHS retains rulemaking authority over administrative aggregation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Medicare Act permits aggregation of multiple Medicare claims in district court to satisfy the amount‑in‑controversy requirement | Bloom: Yes—§1395ff(b)(1)(E)(ii) allows aggregation where claims involve related services to the same individual; aggregated value here exceeds the threshold | HHS: No—provision is directed to the Secretary and governs only agency aggregation; silence about judicial aggregation implies exclusion | Court: Aggregation is permitted in district court when statutory conditions are met; vacated district court dismissal and remanded |
Key Cases Cited
- Snyder v. Harris, 394 U.S. 332 (U.S. 1969) (recognizing traditional aggregation of a single plaintiff's multiple claims against a single defendant)
- United States v. Williams, 733 F.3d 448 (2d Cir. 2013) (standard of review: de novo review applied)
- Brown & Williamson Tobacco Corp. v. FDA, 529 U.S. 120 (U.S. 2000) (statutory interpretation requires attention to regulatory backdrop)
- NLRB v. Sw. Gen., Inc., 137 S. Ct. 929 (U.S. 2017) (limits on applying expressio unius canon; context matters)
- Barnhart v. Peabody Coal Co., 537 U.S. 149 (U.S. 2003) (expressio unius applied only when exclusion is sensible in context)
- Hunter v. United Van Lines, 746 F.2d 635 (9th Cir. 1984) (collecting authorities on aggregation under federal‑question jurisdiction)
- Abbott Labs. v. Gardner, 387 U.S. 136 (U.S. 1967) (reviewability principles; mere reviewability of some acts does not imply exclusion of others)
- Chevron U.S.A., Inc. v. Nat. Res. Def. Council, 467 U.S. 837 (U.S. 1984) (framework for evaluating agency statutory interpretations)
- Bowles v. Seminole Rock & Sand Co., 325 U.S. 410 (U.S. 1945) (deference to reasonable agency interpretations of its own regulations)
