This appeal is from the District Court’s disposition of a complaint challenging the rates negotiated by the United States Civil Service Commission for federal employees’ Blue Cross-Blue Shield health insurance. Plaintiff-appellant, the National Treasury Employees Union (NTEU), seeks a damage award to those it represents, an order requiring the Commission to follow certain accounting and reporting practices set forth in various procurement regulations, and other appropriate relief. The District Court dismissed two counts for want of jurisdiction and granted summary judgment for the defendants-appellees on the remaining two. For the reasons set forth below, we reverse and remand on all issues save one, as to which we affirm summary judgment.
I
Since 1960 federal employees have been able to choose among a variety of health insurance options made available under the auspices of the Federal Employees Health Benefits Act, 5 U.S.C. § 8901 et seq. (1976). 1 The costs of the various plans are borne in part by the Government and in part by the employees through payroll deductions. 5 U.S.C. § 8906. The Act gives the Civil Service Commission authority to contract with qualified insurance carriers to provide various types of health insurance plans, 5 U.S.C. § 8902(a), and states: “Rates charged under health benefits plans * * shall reasonably and equitably reflect the cost of the benefits provided.” 5 U.S.C. § 8902(i) (emphasis added). In addition, rates for health benefit plans classified either as Service Benefit Plans or Indemnity Benefit Plans are to be “determined on a basis which, in the judgment of the Commission, is consistent with the lowest schedule of basic rates generally charged for new group health benefit plans issued to large employers.” Id. See also 5 U.S.C. §§ 8903 and 8904. In subsequent years, rates for these kinds of plans may, under the statute, be readjusted “on a basis which, in the judgment of the Commission, is consistent with the general practice of carriers which issue group health benefit plans to large employers.” 5 U.S.C. § 8902(i). Blue Cross-Blue Shield is a Service Benefit Plan.
The 1976 rate negotiations for federal employees’ Blue Cross-Blue Shield coverage, which are the primary target of the instant litigation, began in mid-1975 when Blue Cross-Blue Shield submitted a proposed rate increase of 38.4 percent — an amount that was intended both to compensate for a shortfall in revenues the preceding year and to meet demands for services in 1976. Joint Appendix (JA) 101-102. This figure was subsequently revised downward to 35.3 percent, JA 110, and an increase of that amount was agreed to.
On December 30,1975 NTEU filed suit in the District Court challenging this rate increase. On the basis of studies and analyses somewhat critical of the 35.3 percent figure,
2
NTEU’s complaint alleged in Count
Defendants — the United States and various Civil Service Commission officials— moved for dismissal on jurisdictional grounds and, in the alternative, for summary judgment. The District Judge dismissed Counts 1 and 4 — relating to the actual rates negotiated — for want of jurisdiction. JA 17-20. Turning to Counts 2 and 3, the judge noted that the defendants had supplied affidavits to the effect that they were “in compliance with the applicable [procurement regulations]” and that plaintiffs had submitted no counter-affidavits. JA 21. In consequence, he granted summary judgment.
II
We deal first with the proper disposition of Counts 1 and 4. The District Court was of the opinion that it lacked subject matter jurisdiction over the issues raised in these counts. We disagree. In our judgment, the court adopted too parsimonious a view of the jurisdictional grant which Congress included when it adopted the Federal Em
A.
At the outset, we note that there are two potential jurisdictional difficulties posed by the NTEU complaint. The first has to do with the ever complex problem of sovereign immunity and the second with the amount in controversy. Either might have rendered the general grant of federal question jurisdiction in 28 U.S.C. § 1331(a) (1976) unavailable as a vehicle for the present suit. 5 In our judgment, however, resort to Section 1331(a) is unnecessary because the jurisdictional provision within the Health Benefits Act itself — 5 U.S.C. § 8912 — expressly resolves both problems by waiving sovereign immunity and granting jurisdiction to the District Courts regardless of amount in controversy. Because this general area is not free from difficulty — and because of the confusion that inheres in the use of the term “jurisdiction” to denote both the broad rules regarding the subject matters cognizable in federal court and the specific issues that arise under the rubric of sovereign immunity 6 — we set forth our analysis at some length. 7
The key question is the scope of Congress’ consent to suit in 5 U.S.C. § 8912. That section provides:
The district courts of the United States have original jurisdiction, concurrent with the Court of Claims, of a civil action or claim against the United States founded on this chapter [Chapter 89 of Title 5, which is the Health Benefits Act as currently codified].
The District Court was of the opinion that, because the jurisdiction of the Court of Claims was “expressly referenced,” “the intent of the drafters [was] that the jurisdiction conferred upon the district courts be for the same types of actions under the Act as are properly brought in the Court of Claims.” JA 19. Reasoning that the in
In our judgment, the scope of Section 8912 is not so limited. The statutory grant of jurisdiction by its terms unmistakably covers all civil actions against the United States that are “founded on this chapter.” It is thus a broad consent to all suits brought to enforce rights and obligations created by the Health Benefits Act. We find no merit in the contention that the inclusion of a reference to the Court of Claims was a backhanded way of limiting and distorting this broad jurisdictional grant. To so conclude would require us to ignore the plain meaning of the words that Congress chose. Rather, it seems to us more likely that the reference to the Court of Claims was intended .simply to make clear that that forum too is available to hear suits founded on Chapter 89.
Our conclusion in this regard closely parallels that reached by this court in 1962 when construing the nearly identical language of the jurisdictional grant in the Federal Employees Group Life Insurance Act of 1954.
See Barnes v. United States,
[T]he District Courts were granted jurisdiction over civil actions or claims “founded upon” the Act. The United States has consented to be sued, we conclude, to the extent that any such civil action or claim can be shown to involve some right created by this Act and a breach by the Government of some duty with respect thereto.
Id. 10
The determination that Section 8912 extends beyond those sorts of civil actions that might otherwise have been brought in the Court of Claims does not conclude our jurisdictional inquiry. For we still must ensure that the NTEU complaint in fact falls within that section. This requires a more careful exploration of the general scope of Congress’ consent to suit and a brief look at the import of the “against the United States” language in Section 8912.
The scope of consent problem can be approached in two fairly distinct ways. The first tends to expand and prolong the jurisdictional inquiry. Under it, we would begin by noting that jurisdiction depends upon congressional consent to suit and that Congress has, via Section 8912, consented to suits to vindicate rights or enforce obligations created by the Federal Employees Health Benefits Act. Accordingly, the question of jurisdiction could be seen to
The second approach tends to foreshorten the jurisdictional inquiry by separating the consent to suit issue from the inquiry into the precise substantive rights and duties created by the Act. Under this approach, we would begin by making a threshold determination that the NTEU suit was “founded on” Chapter 89 of Title 5. This would not be a judgment on the merits. Rather, in a fashion analogous to that common in federal question cases, it would merely be a determination that the suit is nonfrivolous and arguably grounded on rights inferrable from the Act. If this were the case, we would proceed to inquire into the scope and nature of the specific rights and duties created and the asserted grounds of liability. The latter inquiry would not be undertaken under the rubric of sovereign immunity and consent to suit, and its outcome would not be stated in the language of jurisdiction.
See Barnes v. United States, supra,
From a practical standpoint, these two approaches are actually very close:
Under this second approach, we have no doubt that there exists jurisdiction over all issues raised by appellant. The NTEU complaint asserts that Section 8902(i)’s requirement that rates reasonably and equitably reflect costs imposes a duty on the Government and accords to federal employees a corresponding right. That claim cannot be regarded as frivolous, and it is clearly within the words “founded on this chapter” which Congress used in- Section 8912. The validity as a matter of law of the plaintiff’s arguments, the content of the reasonable and equitable standard, the proper characterization of the facts in the present situation, and the appropriate relief, if any, are questions properly addressed at subsequent stages. 14
Having determined that the claims raised are within the ambit of the congressional consent, the only remaining jurisdictional question is whether — as the District Court seems to have thought — the phrase “civil action or claim
against the United States”
in Section 8912 poses difficulties for some facet of the present suit. The potential problem is this: If the District Court was correct in disregarding the joinder of the United States and characterizing the present action as a suit against the Civil Service Commissioners and not the Government, JA 19-20, Section 8912 might be held not to apply. In that event, of course, there would be no sovereign immunity problem since the suit would, by hypothesis, have been held not to be one against the United States. But there could be amount in controversy difficulties since the suit would be remitted to the grant of federal question jurisdiction in 28 U.S.C. § 1331(a) which, until 1976,
15
contained a blanket $10,000 jurisdictional amount requirement
In our judgment, this entire problem is more imagined than real. First, we see no reason to disregard the actual parties and conclude that the NTEU complaint is not what it purports to be — a clearly non-frivolous claim against the United States. 17 Second, even if some portion of the complaint were regarded as not against the United States, the claim for damages is certainly one against the Government and thus within Section 8912. Jurisdiction over that claim would then, via a theory of pendent jurisdiction, permit the federal court to hear the balance of the complaint as well, regardless of jurisdictional amount. 18 Third, the amendments to Section 1331 eliminating the jurisdictional amount requirement for suits such as the present one seem in any event to be retroactive and thus to confer jurisdiction over cases pending when the law went into effect. 19
B.
Blended in with the District Court’s jurisdictional holding are suggestions that Commission decisions with regard to health insurance rates are not subject to judicial review because the issues raised would be too complex and the criteria to be applied too amorphous. “An examination of the Act,” the District Judge stated, “reveals no standard of review upon which this Court might act * * JA 19. And later he observed that “the complex accounting and actuarial matters involved in setting insurance rates for federal employees should be left to the expertise and judgment of the Civil Service Commission.” JA 20. 20
C.
The preceding conclusions with respect to jurisdiction and reviewability necessarily require that the District Court be reversed and the case remanded for further proceedings on Counts 1 and 4. It is for that court to determine whether the Commission has complied with the requirements of Section 8902(i), and we, of course, intimate no view on the matter. We do, however, wish to emphasize two points that may be important on remand.
The first is that the scope of review in a case such as this is quite narrow. As a result, while the District Court should undertake a “substantial inquiry,”
Citizens to Preserve Overton Park, Inc. v. Volpe, supra,
The second point we emphasize has to do with the question of relief. NTEU seeks damages in the amount of the excess rates supposedly paid by federal employees in 1976 as well as “such other and further relief as the Court may deem appropriate.” JA 12. Whether the former can reasonably be inferred from the statutory scheme and what the latter might include are questions for the District Court to determine on remand if it concludes that the Commission has in fact acted in violation of Section 8902(i). It is important to stress at this stage, however, that nothing in our jurisdiction or reviewability holdings in any way leads to or even supports the conclusion that damages either were actually contemplated by Congress or flow logically from the structure or content of the statutory scheme. We have held only that a suit asserting rights arguably created by Chapter 89 and seeking their vindication is one “founded on” that chapter and hence within the rather broad consent to suit in Section 8912. It would in no way be inconsistent with that conclusion to determine subsequently that the particular relief sought is not available as a matter of sound statutory construction and inference. That Congress has consented to suit, in short, does not mean that it has validated every conceivable cause of action and claim for relief which counsel can construct. 23
III.
We turn now to the District Court’s disposition of Counts 2 and 3 of the NTEU complaint, which relate to the Commission’s alleged failure to apply Federal Procurement Regulations set forth in Chapter 1 of 41 C.F.R. to the health insurance rate negotiation and audit process. Defendants submitted an affidavit of one James L. Edwards, chief of the Program Review and Audits Office of the Civil Service Commission’s Bureau of Retirement, Insurance and Occupational Health. That affidavit states in relevant part:
Each of the 54 auditors assigned to the various Program Review and Audits staffs has in his possession as part of a policy and procedures manual, a copy of the Federal Procurement Regulations (41 CFR 1-15.2). The Federal Procurement Regulations are used in determining allowable and allocable administrative expenses charged by the various health benefit carriers.
JA 26. On the basis of this affidavit, the plaintiff’s failure to submit a counter-affidavit, and Rule 56(e) of the Federal Rules of Civil Procedure, 24 the District Court concluded that summary judgment was proper as to Counts 2 and 3. JA 21.
IV.
In conclusion, we reverse the District Court’s dismissal of Counts 1 and 4 of the NTEU complaint and remand so that that court may determine whether the Commission has complied with the standard set forth in Section 8902(i) of the Health Benefits Act. And we reverse and remand the District Court’s grant of summary judgment on Counts 2 and 3 with regard to all procurement regulations save those relating to administrative expenses in 41 C.F.R.. § 1-15.2. Summary judgment as to the latter is affirmed.
So ordered.
. Relying in part on this decision, the Fifth Circuit, in
Shannon v. United States,
Interestingly, on the basis of the Barnes case, counsel for defendants-appellees in the present litigation essentially conceded at oral argument that the District Court had erred in its jurisdictional holding.
Notes
. The Act, which was adopted September 28, 1959, 73 Stat. 708, was previously codified at 5 U.S.C. § 3001 et seq.
.
Specifically, the NTEU complaint referred to: (1) “An actuarial analysis conducted by an actuary employed by the [Commission]” which purportedly stated that a rate increase ranging from 26.5% to 31.9% would be justifiable. JA 6. The Commission, through the affidavit of a chief actuary, denies any knowledge of an analysis which arrived at this conclusion. JA 25. (2) A study by the Federal Insurance Administration concluding that a 17.4% increase would be the “lower boundary” of a justifiable rate increase. JA 112-113. (3) A General Accounting Office report noting a computational error in the actuarial analysis performed by
. This “public service charge” amounted to $3.3 million in the 1976 contract. See Article X, § (a)(3)(C) of that contract, JA 45. A variety of less than consistent explanations for the charge are set forth in appellees’ brief at 36-38.
. The standing of NTEU to bring the instant suit has not directly been challenged in this court. We note, however, that there appears to be no standing obstacle. In the first place, there is no doubt that if the Commission has actually failed to negotiate rates that reasonably and equitably reflect costs, federal employees like members of the plaintiff union would suffer “injury in fact.” Further, that injury seems clearly to be within the zone of interests protected by the requirement of § 8902(i) that rates “reasonably and equitably reflect the cost of the benefits provided.” See
Ass'n of Data Processing Service Organizations, Inc. v. Camp,
Having established that individual federal employees have standing, it remains only to ensure that NTEU has standing derivatively as a representative of those employees. NTEU is the principal union within the Department of the Treasury and has been designated as the exclusive representative of approximately 90,-000 federal employees. JA 241. We see no reason to think the union lacks standing to represent those employees in this suit. The Supreme Court has stated that “an organization whose members are injured may represent those members in a proceeding for judicial review.”
Sierra Club v. Morton,
. In its present form 28 U.S.C. § 1331(a) does not require any jurisdictional amount in suits against the United States or its instrumentalities and officers. The legislation eliminating the $10,000 requirement for such suits, which was enacted in 1976, is discussed at notes 7 and 19 and 191 U.S.App.D.C. at----,
. Statutes consenting to suit against the United States, for example, are generally phrased in jurisdictional terms. See, e. g., 28 U.S.C. § 1346(b) (1976) (Federal Tort Claims Act); 28 U.S.C. § 1347 (1976) (jurisdiction over actions to partition lands). For an exception, see Public Vessels Act, 46 U.S.C. § 781 et seq. (1970) (couching waiver of sovereign immunity in terms of permission to sue the United States). See generally P. Bator, P. Mishkin, D. Shapiro & H. Wechsler, Hart & Wechsler’s The Federal Courts and the Federal System 1326-1331 (2d ed. 1973).
. In view of our conclusion that 5 U.S.C. § 8912 applies to the present suit, we have no occasion to reach a number of other possible grounds for finding consent to suit and jurisdiction. Those grounds include: (1) The common law “fiction” that a suit against officials acting beyond the scope of their authority is not a suit against the sovereign.
See generally Ex parte Young,
. The District Court also rejected plaintiffs arguments that jurisdiction was proper under the mandamus statute, 28 U.S.C. § 1361 (1976), and the Declaratory Judgment Act, 28 U.S.C. § 2201 (1976). JA 17-20.
.
See also McDade v. Hampton,
The district courts of the United States have original jurisdiction, concurrent with the Court of Claims, of a civil action or claim against the United States founded on this chapter.
. Carried to its logical extreme, this approach entirely collapses the merits into the jurisdictional inquiry via the notion of congressional intent. The result is something of a tautology — Congress is held only to have consented to suits in which plaintiffs seek relief which Congress would want them to receive. An analogous tautology in cases brought under the federal question jurisdiction was squarely rejected by the Supreme Court in
Bell v. Hood,
.
See also Director, Edward J. Meyer Mem. Hospital v. Stetz,
. This second approach also comports better with the common usage of the term “jurisdiction” to denote a threshold question or inquiry capable of screening out those sorts of controversies upon which — because of historical, statutory, or constitutional constraints — the federal courts are not to act. To the extent that the jurisdictional determination cannot be made short of a decision on the merits, this screening function is undermined.
.
Cf. Bell v. Hood, supra
note 11,
.
See
Pub.L. No. 94-574,
supra
note 7 (adding language quoted in note 7
supra).
The Supreme Court has made it clear that § 10 of the Administrative Procedure Act, 5 U.S.C. § 701
et seq.
(1976), is not an independent grant of jurisdiction and thus does not provide a solution to the jurisdictional amount problem.
See Califano v. Sanders,
. That rule is set forth in
Snyder v. Harris,
.
Cf. Jones v. United States,
.
Cf. Hagans v. Levine,
.
See Andrus v. Charlestone Stone Products Co.,
. The District Judge implicitly adopted the first approach to jurisdiction and sovereign immunity described in text.
See
191 U.S.App.D.C. at---,
. Appellant asserts that this is not an APA suit or, less explicitly, that the APA does not provide the exclusive means of challenging Commission actions. Presumably it does so in an effort to escape the rather narrow scope of review which § 10(e) of the APA, 5 U.S.C. § 706(2)(A) (1976), provides, and to keep alive its damage claim, which fits nowhere within the structure of the APA. While the enactment of a special jurisdictional grant in the Health Benefits Act — 5 U.S.C. § 8912 — provides some support for the proposition that Congress contemplated the possibility of some non-APA suits to remedy Commission abuses, the presence of that jurisdictional grant is not conclusive. Section 8912 was enacted at a time when (1) there was a blanket amount in controversy requirement in the grant of federal question jurisdiction and (2) the APA contained no express waiver of sovereign immunity. See note 7 supra. Thus it might be argued that § 8912 was just a way of ensuring that APA suits could be brought against the Commission. Still, the broad grant in § 8912 of jurisdiction over a “civil action or claim against the United States founded on this chapter” does not by its terms suggest that the APA totally occupies the sphere of judicial activity which Congress had in mind. The nature of any additional occupants, of course, is for the District Court to consider on remand. Under the rubric of re-viewability, we have merely noted that the APA’s exceptions to the presumption of re-viewability do not apply to the present case.
. See note 21 supra.
. See note 20 supra.
. Rule 56(e) states in pertinent part:
When a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denials of his pleading, but his response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue for trial. If he does not so respond, summary judgment, if appropriate, shall be entered against him.
. Cf. Rule 56(d), Fed. R. Civ. P. (discussing partial summary judgment).
. See brief for appellees at 43 (arguing that cost analysis provisions of 41 C.F.R. § 1-3.807-3(a)(2) and other provisions of Part 1-3 do not apply to the Blue Cross-Blue Shield contract because the original of that contract predates the regulations and subsequent adjustments of rates do not amount to procurement of new contracts).
