Laura Wilson, Personal Representative of the Estate of Max Wilson, Deceased v. United StatesLaura Wilson, Personal Representative of the Estate of Max Wilson, Deceased v. United States
Plaintiff-Appellant Laura Wilson is the personal representative of the estate of her deceased husband, Max Wilson. Prior to his death, Mr. Wilson received medical services that were paid for by Medicare. Following his death, Mr. Wilson’s estate brought a medical malpractice action against a hospital and two doctors. After the estate settled the action and received payment from the defendants, the Department of Health and Human Services (“HHS”), on behalf of Medicare, claimed entitlement to a portion of the settlement. Ms. Wilson, on behalf of the estate, paid the claim and then filed suit in the United States Court of Federal Claims to recover the payment. In the suit, she contended that the gоvernment’s claim against her husband’s estate was improper and therefore constituted an illegal exaction. Ms. Wilson now appeals the decision of the Court of Federal Claims that dismissed her suit for lack of jurisdiction.
Wilson v. United States,
BACKGROUND
I.
Some background will help the reader to understand the issue in this case. Title XVIII of the Social Security Act, 79 Stat. 291, as amended,
For the first fifteen years, Medicare paid for medical services without regard to whether they were also covered by an employer group health plan.
Health Ins. Ass’n,
(2) Medicare secondary payer
(A) In general
Payment under this subchapter may not be made, except as provided in sub-paragraph (B), with respect to any item or service to the extent that—
(i) payment has been made, or can reasonably be expected to be made, with respect to the item or service as required under paragraph (l), 5 or
(ii) payment has been made or can reasonably be expected to be made promptly (as determined in accordance with regulations) under a workmen’s compensation law or plan of the United States or a State or under an automobile or liability insurance policy or plan (including a self-insurance plan) or under no fault insurance.
In this subsection, the term “primary plan” means a group health plan or large group health plan, to the extent that clause (i) applies, and a workmen’s compensation law or plan, an automobile or liability insurance policy or plan (including a self-insured plan) or no fault insurance, to the extent that clause (ii) applies.
Thus, if a Medicare recipient has medical insurance provided through a “primary plan,” Medicare is precluded from paying for medical services except to provide secondary coverage. Put another way, “Medicare serves as a backup insurance plan to cover that which is not paid for by a primary insurance plan.”
Thompson v. Goetzmann,
Judicial review of claims arising under the Medicare Act is pursuant to
Any individual, after any final decision of the [Secretary] made after a hearing to which he was a party, irrespective of the amount in controversy, may obtain a review of such decision by a civil action commenced within sixty days after the mailing to him of notice of such decision or within such further time as the [Secretary] may allow. Such action shall be brought in the district court of the United States for the judicial district in which the plaintiff rеsides, or has his principal place of business, or, if he does not reside or have his principal place of business within any such judicial district, in the United States District Court for the District of Columbia....
Finally, before bringing suit pursuant to
We now turn to the facts of this case.
II.
In April of 2000, Ms. Wilson, as the personal representative of the estate of her deceased husband, Max Wilson, filed a medical malpractice action in state court in Michigan against the Genesys Regional Medical Center and two doctors who had treated her husband prior to his death. Eventually, Ms. Wilson settled the case for $160,000. Subsequently, on June 20, 2002, in a letter to Ms. Wilson’s attorney, HHS formally asserted a claim for reimbursement against the settlement. HHS stated that Medicare had made payments for Mr. Wilson’s care in the amount of approximately $126,000 under Medicare Part A and in the amount of approximately $21,000 under Medicare Part B. In seeking reimbursement, HHS discounted the total amount of the payments by the estimated amount of Ms. Wilson’s attorney fees and the expenses incurred in pursuing the malpractice action. This resulted in a claim by HHS in the amount of $88,744.72. The asserted basis for seeking reimbursement from the estate was that HHS was entitled to repayment for conditional payments made by Medicare on behalf of Mr. Wilson under the MSP provisions discussed above, in particular
III.
On March 24, 2003, Ms. Wilson filed suit in the Court of Federal Claims, seeking to recover the $48,277.33 she had paid HHS. In her suit, she alleged that the government, through HHS, had effected an illegal exaction because it had engaged in a wrongful assertion of statutory power under the MSP provisions. Ms. Wilson asserted that the Court of Federal Claims had jurisdiction over her claim under the Tucker Act,
On December 4, 2003, the Court of Federal Claims granted the government’s motion to dismiss.
Order,
Ms. Wilson timely appealed the court’s decision. We have jurisdiction pursuant to
DISCUSSION
I.
Whether the Court of Federal Claims properly dismissed Ms. Wilson’s complaint for lack of subject matter jurisdiction is a question of law that we review de novo.
W. Co. of N. Am. v. United States,
The United States Court of Federal Claims shall have jurisdiction to render judgment upon any claim against the United States fоunded either upon the Constitution, or any Act of Congress or any regulation of an executive department, or upon any express or implied contract with the United States, or for liquidated or unliquidated damages in cases not sounding in tort.
A claim may be asserted under the Tucker Act “for recovery of monies that the government has required to be paid contrary to law.”
Aerolineas Argentinas v. United States,
St. Vincent’s Medical Center
is of particular relevance to this case, because, in that case, we found preemption of Tucker Act jurisdiction by certain provisions of the Medicare Act, albeit not the provisions at issue here. St. Vincent’s Medical Center, a hospital, sought reimbursement for electricity costs it had incurred in providing services tо Medicare beneficiaries.
According to
II.
Ms. Wilson argues that the Court оf Federal Claims erred in dismissing her complaint for lack of jurisdiction. She contends that she presented an illegal exaction claim within the court’s Tucker Act jurisdiction. In Ms. Wilson’s words: “[T]he Government made a lawless demand for reimbursement from a separate, tort settlement for the amounts previously paid as Medicare benefits, claiming a right of reimbursement under the MSP provisions of the Medicare Act, particularly,
For its part, the government argues that the Court of Federal Claims did not err in dismissing Ms. Wilson’s complaint for lack of jurisdiction. The government characterizes Ms. Wilson’s action as a challenge to the right of Medicare to recover from tort liability settlements any conditional payments made on the beneficiary’s behalf. Under these circumstances, the government argues, any court adjudicating Ms. Wilson’s claim would have to “analyze the full scope and extent of a Medicare beneficiary’s entitlement to benefits and interpret the MSP provisions of the Medicare Act.” (Br. оf Appellee 14-15.) Consequently, according to the government, Ms. Wilson’s claim must be viewed as arising under the Medicare Act. As a result, Ms, Wilson was required to exhaust her administrative remedies under the Medicare Act and then proceed to district court, neither of which she did. The government concludes by urging that Ms. Wilson’s argument that it would be futile for her to pursue administrative remedies is without merit. The government contends that the exceptions to the exhaustion requirement upon which Ms. Wilson relies are inappo-site.
III.
The Supreme Court has addressed the “arising under” issue. In
Weinberger v. Salfi,
In
Heckler v. Ringer,
IV.
As seen, Ms. Wilson’s contention is that HHS’s demand for reimbursement was unlawful because it was contrary to the MSP provisions of the Medicare Act. Ms. Wilson’s argument is that HHS’s demand upon her husband’s estate was unlawful because Medicare had not made an overpayment or an incorrect payment on her husband’s behalf and because, as far as the MSP provisions are concerned, the defendants in the malpractice action did not constitute a “plan” or a self-insured “plan” under
We already have mentioned
[A]ny individual dissatisfied with any initial determination under [42 U.S.C. § 1395ff(a)(l) ] shall be entitled to reconsideration of the determination, and ... a hearing thereon by the Secretary ... and to judicial review of the Secretary’s final decision after such hearing as is provided insection 405(g) of this title.
(A) The initial determination of whether an individual is entitled to benefits under [Medicare Part A or Part B],
(B) The initial determination of the amount of benefits available to the individual under such parts.
(C) Any other initial determination with respect to a claim for benefits under such parts ....
having a present or potential effect on the amount of benefits to be paid under Part A of Medicare, including a determination as to whether there has been an overpayment or underpayment of benefits paid under Part A, and if so, the amount thereof.
Ms. Wilson argues that these provisions do not provide her an administrative remedy because they are limited to disputes over Medicare “benefits.” She argues that her dispute is not about Medicare benefits at all. We disagree. We think her request for repayment of the portion of the settlement she paid to the government is a request for Medicare benefits within the meaning of
Ms. Wilson argues, however, that because what HHS did was contrary to the Medicare Act, the scheme for administrative and judicial review under the Act does not apply. Acceptance of Ms. Wilson’s argument would subvert the carefully crafted scheme that Congress created in the Act. That is because it would mean that whenever a Medicare claimant disagreed with agency action on the ground that the action was contrary to statute (even if the question turned on the meaning of a statutory provision), he or she could opt out of the administrative review process. Not only would that be an illogical result, but the Supreme Court has made it clear that “Congress, in both the Social Security Act and the Medicare Act, insisted upon an initial presentation to the agency.”
Ill. Council,
V.
The issue before us today is one of first impression for this court. That said, our determination that Ms. Wilson’s claim arises under the Medicare Act is consistent with the rulings of two other circuits.
Fanning v. United States,
Eventually, HHS sought reimbursement from the settlement trust fund for Medicare payments that had been made to members of the settlement class for various medical expenses arising from injuries allegedly suffered as a result of using AcroMed bone screws. HHS asserted that it was entitled to payment under
The government moved to dismiss the suit for lack of jurisdiction, arguing that the class members were not entitled to judicial review because they had failed to exhaust their administrative remedies before bringing suit, as required by
The government аppealed the issuance of the preliminary injunction, and the Third Circuit reversed, ordering the complaint dismissed for lack of jurisdiction. Id. at 402. The court pointed out that the government’s basis for seeking reimbursement from the settlement trust fund was that AcroMed, the alleged tortfeasor who created the trust fund, was a “self-insured plan” and was, therefore, the primary payer under the MSP. Id. at 400. The court determined:
The essence of the claim asserted in Fanning’s amended class action complaint is that the government is not entitled to recover Medicare overpayments from a fund created as a result of a settlement with an alleged tortfeasor because Congress never intended to treat a settlement trust fund as payments from a primary insurer under the MSP. We believe there may be force to Fanning’s argument. However, the government’s basis for seeking MSP reimbursement from the AcroMed settlement trust fund is that AcroMed is a “self-insured plan” and is, therefore the primary payer under the MSP. Accordingly, the claim asserted in the amended class action complaint is wholly dependent upon determining whether or not AcroMed is a “self-insured plan” and therefore, a “primary plan” under the MSP. It is thus apparent that both the standing and the substantive basis for the claim asserted in the amended class action complaint are rooted in, and derived from, the Medicare Act. Consequently, the claim is one “arising under” the Medicare Act and the third sentence of§ 405(h) therefore deprived the district cоurt of federal question jurisdiction. The AcroMed class settlement plaintiffs are thus required by§ 405(h) , as interpreted by Salfi, Ringer, and Illinois Council,' to channel their claim through the agency.
Id. at 399-400 (footnote omitted). 12
Also instructive, we think, is
Buckner v. Heckler,
Like the Third Circuit in
Fanning
and the Fourth Circuit in
Buckner,
we do not address the merits of Ms. Wilson’s claim. Because the Medicare Act contains its own comprehensive administrative and judicial review scheme which was available to Ms. Wilson, “Congress has expressly placed jurisdiction elsewhere,” and there is no Tucker Act jurisdiction over Ms. Wilson’s claim.
Aerolineas,
Ms. Wilson’s reliance on
Thompson v. Goetzmann,
In
Mason,
the plaintiffs asserted a private right
of
аction under the provision of the Medicare Act pursuant to which individuals may be awarded double damages against a primary plan that has wrongfully denied them payment for health care that has been paid for by Medicare.
See
Neither Goetzmann nor Mason involved a jurisdictionаl issue, as is presented here: whether the trial court (in this ease, the Court of Federal Claims) lacks jurisdiction over a plaintiffs claim because the claim arises under the Medicare Act and therefore is subject to the specialized reidew procedures of the Act. Rather, Goetzmann and Wilson addressed the merits of whether particular plaintiffs (the government in Goetzmann, the individual plaintiffs in Mason ) were entitled to recovery under the provisions of the Medicare Act at issue. Jurisdictional issues such as those presented here were not an issue in either case.
VI.
As noted above, Ms. Wilson argues that the exceptions to the exhaustion doctrine recognized by the Supreme Court in
McCarthy v. Madigan,
CONCLUSION
For the foregoing reasons, we agree with the Court of Federal Claims that the scheme for comprehensive administrative and judicial review set forth in the Medicare Act preempts Tucker Act jurisdiction over Ms. Wilson’s claim for reimbursement. We therefore affirm the Court of Federal Claims’ dismissal of Ms. Wilson’s suit for lack of jurisdiction.
Each party shall bear its own costs.
Notes
. For ease of refеrence, we refer to the claim that Ms. Wilson brought as the personal representative of the estate of her deceased husband as "Ms. Wilson’s claim.”
. Unless otherwise indicated, all statutory references are to the 2000 version of the United States Code.
.For convenience, we refer to the United States in this case as "HHS,” "the Secretary,” "Medicare,” or "the government,” as the context requires.
. In this opinion, we refer to the MSP provisions as they existed prior to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, Pub.L. 108-173, 117 Stat.2066. The changes made by that legislation are not pertinent to this case.
. Paragraph (1) of
.
. The third sentence of
.
. When we refer here to claims “arising under" the Medicare Act, we refer to claims for which specialized administrative review under
. Section 1395gg provides, in relevant part, as follows:
(b) Incorrect payments on behalf of individuals; payment adjustment
Where—
(1) more than the correct amount is paid under this subchapter to a provider of services or other person for items or services furnished an individual and the Secretary determines (A) that, within suсh period as he may specify, the excess over the correct amount cannot be recouped from such provider of services or other person, or (B) that such provider of services or other person was without fault with respect to the payment of such excess over the correct amount, ... proper adjustments shall be made, under regulations prescribed ... by the Secretary, by decreasing subsequent payments ....
.
The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.
. "Moreover,” the court added, "we note, but do not decide, that a reasonable argument