Stеven Alan LEVIN, Plaintiff-Appellant, v. UNITED STATES of America; Frank M. Bishop, LCDR, MC, USNR 3855, Defendants-Appellees, and Robert Wresch, Movant-Appellee.
No. 09-16362.
United States Court of Appeals, Ninth Circuit.
May 23, 2013.
DIARMUID F. O‘SCANNLAIN, RICHARD C. TALLMAN, and MILAN D. SMITH, JR., Circuit Judges.
Steven Alan Levin, Agat, GU, pro se.
Daniel Tenny, Thomas Mark Bondy, Esquire, DOJ-U.S. Department of Justice, Civil Division-Appellate Staff, Washington, DC, Jessica Friday Cruz, Esquire, Assistant U.S., Mikel William Schwab, Esquire, Assistant U.S., USHA-Office of the U.S. Attorney, Hagatna, GU, for Defendants-Appellees.
Rawlen M.T. Mantanona, Esquire, Partner, Cabot Mantanona LLP, Tamuning, GU, for Movant-Appelleе.
Before: DIARMUID F. O‘SCANNLAIN, RICHARD C. TALLMAN, and MILAN D. SMITH, JR., Circuit Judges.
ORDER
The original decision entered by this court in this matter, reported at 663 F.3d 1059 (9th Cir. 2011), was reversed by the Supreme Court of the United States. See Levin v. United States, U.S., 133 S.Ct. 1224, 185 L.Ed.2d 343 (2013). We, in turn, reverse and remand to the district court for further proceedings on Levin‘s battery claim, consistent with the Supreme Court‘s opinion.
REVERSED and REMANDED.
Ronald FOURNIER, Plaintiff, and Delores Berg; Thomas DiCecco, Jr., Plaintiffs-Appellants, v. Kathleen SEBELIUS, Secretary of the Department of Health and Human Services, Defendant-Appellee.
No. 12-15478.
United States Court of Appeals, Ninth Circuit.
Argued and Submitted March 5, 2013. Filed May 31, 2013.
718 F.3d 1110
ALFRED T. GOODWIN, KIM MCLANE WARDLAW, and RONALD M. GOULD, Circuit Judges.
Sushma Soni (argued), Attorney, Civil Division, Stuart F. Delery, Acting Assistant Attorney General, Dennis K. Burke, United States Attorney, Michael S. Raab, Attorney, Civil Division, United States Department of Justice, Washington, D.C., for Defendant-Appellee.
Ruth Szanto, Arizona Center for Disability Law, Phoenix, AZ, for Amici Curiae.
Before: ALFRED T. GOODWIN, KIM MCLANE WARDLAW, and RONALD M. GOULD, Circuit Judges.
OPINION
GOULD, Circuit Judge:
Appellants Delores Berg and Thomas DiCecco are Medicare beneficiaries who suffer from medical conditions that caused significant dental problems, and they received dental services to correct those problems. But the Secretary of the De
I
Berg is a Medicare Advantage beneficiary. She suffers from Sjogren‘s Syndrome, which has left her unable to produce saliva. As a result, she lost teeth, her gums deteriorated, and her bite collapsed. Berg‘s lack of saliva made her prone to gum infections, which put her at risk of a life-threatening heart infection. In response to the grave conditions and risks caused by Sjogren‘s syndrome, Berg‘s dentist recommended a treatment plan that would “develop and reconstruct a leveled bite,” with procedures including a partial denture, several crowns, and bridgework. Berg underwent the recommended procedures on February 27, 2008, at a total cost of $28,750.00.
Berg submitted a сlaim for these services to her Medicare Advantage provider. Her provider denied the claim because Berg was enrolled in a plan that did not cover “[r]outine dental care (such as cleanings, fillings, or dentures) or other dental services.” Berg‘s provider sent her appeal to an independent outside review entity, which told Berg that the dental services related to Sjogren‘s syndrome do not fall within the limited dental coverage of her Medicare Advantage plan and denied her appeal. Berg then appealed to an Administrative Law Judge (“ALJ“), who ruled that the services Berg received were excluded by Medicare‘s dental-services exclusion. Although the plan representatives and the ALJ acknowledged that Berg‘s dental problems stemmed from her Sjogren‘s syndrome, the ALJ concluded that thе services at issue did not fall under any exception to the dental exclusion because Berg‘s “dental work was the primary procedure, rather than necessary to or incident to any Medicare covered procedure.” The Medicare Appeals Council (“MAC“) adopted the ALJ‘s decision and denied Berg‘s appeal, explaining, “Services performed in connection with the care, treatment, filling, removal, or replacement of teeth or structures directly supporting teeth are not covered and, to the extent coverage is provided, it is only under limited circumstances not applicable to this case.”
Thomas DiCecco, Jr., is a Medicare beneficiary under Parts A and B. In 1996, several years before becoming eligible for Medicare, DiCecco received an allogeneic bone-marrow transplant to treat chronic myelogenous leukemia. He received a donor lymphocyte infusion in June 1999. As a result of these treatments, DiCecco developed graft-versus-host disease, with a resulting loss of salivary function. As it did with Berg, DiCecco‘s lack of saliva led to tooth loss. DiCecco‘s tooth decay was so severe that it caused “certain teeth to just crack off,” and forced him to use a feeding tube for nearly a year. More than
Berg and DiCecco joined a lawsuit filed by Ronald Fournier, who raised similar claims to those of Berg and of DiCecco.2 The plaintiffs challenged the MAC decisions, which were the Secretary‘s final decisions in their cases, and sought declaratory and injunctive relief advocating the views that the Secretary‘s decision to deny coverage for their extraordinary, medically related dental services violated HHS policy, the Medicare Act, and their right to equal protection. The district court held (1) that substantial evidence supported the Secretary‘s decisions denying coverage to Berg and DiCecco, (2) that the Secretary‘s statutory intеrpretation excluding coverage was reasonable, and (3) that the Secretary‘s policy does not violate the equal protection guarantee in the Fifth Amendment‘s due process clause. This appeal followed.
II
This appeal centers on the broad exclusion of dental services from Medicare coverage, so we discuss the development of that exclusion. Congress established Medicare in 1965 as Title XVIII of the Social Security Act (“Medicare Act“). Pub. L. No. 89-97, 79 Stat. 286 (1965). Medicare provides medical services to (1) the aged, (2) the disabled, and (3) those who have end-stage renal (kidney) disease.
Medicare provides institutional care, including inpatient hospital services, through Part A,
Medicare coverage is broadly limited to services that are medically “reasonable and necessary.” See
for services in connection with the care, treatment, filling, removal, or replacement of teeth or structures directly supporting teeth, except that payment may be made under part A of this subchapter in the case of inpatient hospital services in connection with the provision of such dental services if the individual, because of his underlying medical condition and clinical status or because of the severity of the dental procedure, requires hospitalization in connection with the provision of such services;
Congress also limited coverage for dental services in a second way: by restricting the definition of “physician.” The Medicare Aсt distinguished between complex, covered dental procedures and common, excluded procedures by defining “physician” to include dentists and oral surgeons only when they performed “(A) surgery related to the jaw or any structure contiguous to the jaw or (B) the reduction of any fracture of the jaw or any facial bone.” Pub. L. No. 89-97, § 1861(r)(2), 79 Stat. 286, 321 (1965).
Covered services, such as surgery related to the jaw, often require individual procedures, such as tooth removal, that standing alone would not be covered as primary procedures. As a result, the Secretary needed to determine when a dental service was provided “in connection with” a covered primary procedure such such that the dental service would be covered. Shortly after passage of the Medicare Act, the Director of the Bureau of Health Insurance answered this question in policy guidance to clarify the coverage of secondary dental services in his Intermediary Letter No. 193 of January 30, 1967.
The Director reasoned that because a dentist was defined as a “physician” only when performing surgery “related to the jaw or structures contiguous to the jaw (including the reduction of any fracture of the jaw or any facial bone), all such surgical procedures performed by a dentist” would be covered unless specifically excluded. By contrast, any services rendered in connection with the examination, care, treatment, filling, removal, or replacement of teeth and any services rendered in connection with the examination, care, or treatment of structures directly supporting the teeth were excluded.3 The
Congress revisited the exclusion of primary dental services in 1972, when it amended
In 1980, Congress amended the Medicare Act to expand the role of dentists in two ways. First, the definition of “physician” was amended to include “a doctor of dеntal surgery or of dental medicine who is legally authorized to practice dentistry by the State in which he performs such function and who is acting within the scope of his license when he performs such functions.” Pub.L. No. 96-499, § 936(a), 94 Stat. 2599 (1980); see also
Second, Congress granted admitting privileges to dentists and expanded coverage of inpatient dental services. Before the 1980 amendment, inpatient dental services were covered оnly when a patient was hospitalized for an underlying, nondental condition. See id. Coverage was “precluded where, in the judgment of the patient‘s dentist, the severity of the dental procedure alone require[d] hospitaliza
These changes to the role of dentists did not change the scope of coverage of dental services on an outpatient basis, and the text of the dental exclusion has not changed since passage, apart from the allowance for inpatient coverage under Part A. Compare Pub. L. No. 89-97, § 1862(a)(12), 79 Stat. 286, 325, with
If an otherwise noncovered procedure or service is performed by a dentist as incident tо and as an integral part of a covered procedure or service performed by the dentist, the total service performed by the dentist on such an occasion is covered.
Centers for Medicare & Medicaid Servs., Publ‘n No. 100-02, Medicare Benefit Policy Manual, ch. 15, § 150, at 134.; see also id. ch. 16 § 140.
An exception to the same-physician rule allows for reimbursement of dental services provided in preparation for a covered procedure performed by a different physician: the extraction of teeth to prepare a patient‘s jaw for radiation treatment of neoplastic disease. Id. at ch. 15, § 150. Most often, a dentist will extract the patient‘s teeth and a radiologist will administer the radiation treatments. Id. In a similar situation, Medicare covers dental examinations on an inpatient basis as part of a work-up before kidney transplant surgery. Centers for Medicare & Medicaid Servs., Publ‘n No. 100-03, Medicare National Coverage Determinations Manual, § 260.6. This examination is оnly provided on an inpatient basis, so it now likely falls under the general allowance for inpatient services under Part A.5 In both situations, however, the purpose of the dental procedure is not the care of teeth or structures supporting teeth but the preparation for a subsequent, covered procedure.
III
We have jurisdiction under
IV
Appellants contest the MAC‘s rulings denying coverage for their dental services by challenging the Secretary‘s underlying policy decision to exclude dental procedures that are not performed at the same time and by the same dentist as a covered procedure. Appellants contend (1) that the Secretary has not carried out Congress‘s intent to cover complex surgical procedures and (2) that the Seсretary‘s coverage policy is irrational and thus violates the equal protection component of the Due Process Clause of the Fifth Amendment. We consider first statutory interpretation, and then the constitutional challenge.
A
When we review an agency‘s interpretation of a statute that it is charged with administering, “[f]irst, always, is the question whether Congress has directly spoken to the precise question at issue.” Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842 (1984). “If the intent of Congress is clear, that is the end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress.” Id. at 842-43. But if “the statute is silent or ambiguous with respect to the specific issue,” we will not “impose [our] own construction on the statute.” Id. at 843. Instead, we ask “whether the agency‘s answer is based on a permissible construction of the statute.” Id. If the agency‘s construction is permissible, we defer to it. See Palomar Med. Ctr. v. Sebelius, 693 F.3d 1151, 1164 (9th Cir.2012).
Before we address whether in the statute Congress has spoken clearly, we must identify the precise question at issue. Appellants do not allege that they received dental services in connection with a covered procedure. Because they do not, the same-physician rule does not come into play, and any ambiguity in the Secretary‘s implementation of that rule is not relevant here.6
Appellants also do not allege that they received dental care on an inpatient basis, and they do not seek reimbursement under Part A. As a result, they do not qualify for
Appellants are in a third category. They received primary dental services on an outpatient basis and sought coverage under Part B. Appellants contend that those services should be covered because they were “medically necessary” to prevent potentially fatal heart infections. The Secretary disagrees, arguing that
Having distinguished Appellants’ situation from related questions about dental coverage under Medicare, we do not think that “Congress has directly spoken to the precise question at issue.” Chevron, 467 U.S. at 842. Section
B
Having concluded that
The Secretary agrees that her interpretation in the CMS Manual does not by itself carry the force of law. See
Under Mead, we will give Chevron deference to an agency‘s interpretation of a statute “only when: (1) ‘it appears that Congress delegated authority to the agency generally to make rules carrying the force of law,’ and (2) ‘the agency interpretation claiming deference was promulgated in the exercise of that authority.‘” Price v. Stevedoring Servs. of Am., Inc., 697 F.3d 820, 833 (9th Cir.2012) (en banc) (quoting Mead, 533 U.S. at 226-27).
The Secretary‘s interpretation meets the first prong of the Mead test. The Secretary has general rulemaking authority under
Addressing the second prong of Mead, we ask whether the Secretary‘s interpretation of the dental exclusion “was promulgated in the exercise of that authority [to make rules carrying the force of law].” Id. at 227. The answer “depends on the form and context of that interpretation.” Price, 697 F.3d at 826. That the Secretary reached her interpretation “through means less formal than ‘notice and comment’ rulemaking does not automatically deprive that interpretation of the judicial deference otherwise its due.” Barnhart v. Walton, 535 U.S. 212, 221 (2002). The Secretary‘s interpretation of the dental exclusion is similar in both form and context to the interpretation given Chevron deference in Barnhart, id. at 225, and we follow Barnhart to conclude the Secretary‘s interpretation meets the second prong of the Mead test.
In Barnhart, the Supreme Court reversed a Fourth Circuit decision holding that a section of the Social Security Act forbade the Secretary‘s interpretation of the meaning of the word “inability” in the definition of “disability.” Id. at 214. The statute defined “disability” as an “inability to engage in any substantial gainful activity ... which has lasted or can be expected to last for a continuous period of not less than 12 months.” Id. (emphasis omitted) (quoting
The petitioner in Barnhart objected to the Court‘s application of Auer, however, because the regulation in question came into effect long after the agency denied his claim for benefits, possibly in response to the litigation. Id. at 221; see Walton v. Apfel, 235 F.3d 184, 188 n. 6 (4th Cir.2000), rev‘d sub nom. Barnhart v. Walton, 535 U.S. 212 (2002) (the proposed regulation did not apply retroactively). But the Court explained that the agency‘s long-held interpretation would warrant Chevron deference even if it had not been bolstered by the rulemaking. Id.7 The Court reasoned that “the intersti
The Secretary‘s interpretation here exhibits those factors. The legal question is interstitial: the dental exclusion “is clear, with clear exceptions,” Wood, 246 F.3d at 1035, and the Secretary‘s interpretation fills the interstices dividing the exceptions from the exclusion. The rule limiting coverage is important to the Secretary‘s administration of Medicare given the scarce resources available and the “vast number of claims that [Medicare] engenders.” Barnhart, 535 U.S. at 225. That vast number of claims, each of which involves distinct medical facts, speaks also to the complexity of administering Medicare “and the consequent need for agency expertise and administrative experience.” Id.
The origins and legal contexts of the two interpretations are also similar. The interpretation in Barnhart originated in a disability-insurance letter, was later published in a state disability-insurance manual, and was included in Social Security Ruling 86-52 before being issued as a regulation following notice-and-comment rulemaking. Id. at 219-20. Here, the Secretary first issued her interpretation in an intermediary letter and later published it in a manual. Social Security rulings, like interpretations in the CMS Manuals, do not have the force of law; both are interpretative rules constituting the agencies’ interpretations of the statutes they administer. Compare Chavez v. Dep‘t of Health & Human Servs., 103 F.3d 849, 851 (9th Cir.1996) (Social Security rulings), with Cmty. Hosp. of Monterey Peninsula v. Thompson, 323 F.3d 782, 788 (9th Cir.2003) (CMS Manual provisions). Both gain the force of law through the process of adjudication of a “vast number of claims” under
In Barnhart, the Court gave particular weight to the long history and stability of the interpretation in question. The agency in Barnhart first adopted its interpretatiоn of “inability” in 1957, and the Court noted that it “will normally accord particular deference to an agency interpretation of ‘longstanding’ duration.” 535 U.S. at 220 (citing North Haven Bd. of Ed. v. Bell, 456 U.S. 512, 522, n. 12 (1982)). Here, the Secretary first adopted her interpretation of the exclusion of primary dental services in her 1967 Intermediary Letter No. 193. More than eleven years have now passed since the Supreme Court decided Barnhart, so the Secretary‘s interpretation of the dental exclusion is even older than the agency‘s interpretation of the word “inability” was when the Court decided Barnhart. In addition to the weight of years of consistent administrative interpretation, the Secretary‘s interpretation of the dental exclusion was issued shortly after passage of the Medicare Act. See Pub. L. No. 89-97, tit. I, 79 Stat. 290 (1965). Such a nearly contemporaneous construction is entitled to significant deference. See Good Samaritan Hosp. v. Shalala, 508 U.S. 402, 414 (1993).
Appellants contend that the Secretary‘s interpretation has been inconsistent and is “entitled to considerably less deference than a consistently held agency view.” I.N.S. v. Cardoza-Fonseca, 480 U.S. 421, 446 n. 30 (1987). But when Appellants describe the Secretary‘s interpretation as inconsistent, they refer not to the challenged interpretation—the policy guidance on outpatient primary dental procedures—but to
Having so conсluded, and in light of our prior conclusion that the statute is ambiguous, we must decide whether the Secretary‘s interpretation is a reasonable one. Congress required the Secretary to deny payment for “services in connection with the care, treatment, filling, removal, or replacement of teeth or structures directly supporting teeth” that are not provided on an inpatient basis to hospitalized patients.
V
Appellants contend that the Secretary‘s coverage rules for dental services create irrational classifications and violate their right to equal protection under the Fifth Amendment. The “promise that no person shall be denied the equal protection of the laws must coexist with the practical necessity that most legislation classifies for one purpose or another, with resulting disadvantage to various groups or persons.” Romer v. Evans, 517 U.S. 620, 631 (1996). Equal protection “does not forbid classifications.” Nordlinger v. Hahn, 505 U.S. 1, 10 (1992). “It simply keeps governmental decisionmakers from treating differently persons who are in all relevant respects alike.” Romer, 517 U.S. at 631. Appellants concede that the classification they challenge is subject to the rational basis test, under which we will uphold a classificatory scheme if it “bears a rational relation to some legitimate end.” Id. Under this standard, Appellants ” ‘have the burden to negat[e] every conceivable basis which might support it.’ ” Diaz v. Brewer, 676 F.3d 823, 826 (9th Cir.2012) (quoting FCC v. Beach Commc‘ns, Inc., 508 U.S. 307, 315 (1993)).
Appellants assert that the “favored classes” of (1) patients who receive their dental services on the same day and from the same physician who provided a covered service, (2) patients who need extractions of teeth to prepare the jaw for radiation treatment, and (3) patients who require a comprehensive dental workup before a kidney transplant do not collectively demonstrate any logical principle. But each of these “favored classes” describes patients with undoubtеdly covered primary procedures who receive dental treatment in connection with those covered procedures. By contrast, Appellants’ primary procedures were noncovered dental treatments. Appellants concede that the goal of limiting coverage is a legitimate
VI
Appellants’ illnesses, Sjogren‘s Syndrome and graft-versus-host disease, are serious, and the conditions that these diseases present strongly require dental treatment to maintain a patient‘s health against catastrophic health risks. The claims of Appellants are sympathetic, and their desire for coverage is understandable. But not all medically necessary services are covered by Medicare, and the Secretary has implemented a coverage framework consistent with the goals of Congress that there be broad denial of coverage for dental services. Although we have concluded that the statutory provision for exclusion of dental services is ambiguous in the sense that plausible divergent constructions can be urged, we also conclude that the Secretary‘s interpretation of thе statute is reasonable. The underlying conditions of Sjogren‘s Syndrome and graft-versus-host disease are complex, but the consequent need is for dental services that are routine in the sense that they are not different from services commonly given others, that is, preparation and application of crowns, bridgework, and fillings. In light of this comprehensive and specific legislative command, which broadly excludes primary dental services from Medicare coverage, we have concluded both that the Secretary‘s statutory interpretation warrants Chevron deference, and that the Secretary‘s statutory interpretation is reasonable.
AFFIRMED.
RONALD M. GOULD
UNITED STATES CIRCUIT JUDGE
