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American Academy of Dermatology v. Department of Health & Human Services

Citations: 118 F.3d 1495; 1997 U.S. App. LEXIS 20995; 1997 WL 411295Docket: 97-2229

Court: Court of Appeals for the Eleventh Circuit; August 7, 1997; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this appellate case, the American Academy of Dermatology, Florida Society of Dermatology, and Seniors Coalition, Inc. appealed the district court's dismissal of their lawsuit against the Department of Health and Human Services (HHS) and related entities. The appellants contested the dismissal, arguing that the district court improperly determined that they failed to exhaust administrative remedies under the Medicare Act by not presenting their claims to the Secretary of HHS. The litigation arose from a Local Medical Review Policy issued by a private insurer administering Medicare Part B in Florida, which limited coverage for actinic keratoses treatment. The appellants sought injunctive relief against these limitations, claiming they contravened Medicare Act standards. However, the court concluded that judicial review of Medicare claims requires the exhaustion of administrative remedies, as mandated by 42 U.S.C. § 405(g), and affirmed the district court's dismissal for lack of subject matter jurisdiction. The court further highlighted the relevance of the Supreme Court precedent in Heckler v. Ringer, which necessitates presentment and exhaustion of administrative remedies before judicial intervention. The decision underscores the post-1986 amendments to the Medicare Act, which aligned Part B claims with Part A for administrative hearings and judicial review, reinforcing the necessity of fulfilling jurisdictional prerequisites for Medicare-related disputes.

Legal Issues Addressed

Applicability of Heckler v. Ringer to Medicare Benefits Claims

Application: The Court relied on Heckler v. Ringer to affirm that the appellants' claims were subject to the same jurisdictional requirements of presentment and exhaustion as Ringer's claims.

Reasoning: The Court found Ringer's case relevant to the current situation, as the relief sought by the appellants—injunctive relief against the Secretary's non-reimbursement policy—was comparable to Ringer's.

Exhaustion of Administrative Remedies under Medicare Act

Application: The appellants' failure to exhaust administrative remedies by not presenting their claims to the Secretary of HHS resulted in the dismissal of their case for lack of subject matter jurisdiction.

Reasoning: The district court denied the temporary restraining order and dismissed the case for lack of subject matter jurisdiction, determining that the appellants were required to present their claims to the Secretary of Health and Human Services and exhaust administrative remedies as mandated by 42 U.S.C. § 405(g) and § 1395ff(b)(1) prior to court intervention.

Judicial Review Availability Post-Administrative Remedies

Application: The ruling clarified that judicial review is available following a final decision by the Secretary, ensuring that claims, including those challenging the Local Medical Review Policy, are reviewable if denied.

Reasoning: It highlights that claims might not be denied upon presentation to the Secretary, and should denials occur, judicial review is available for the Local Medical Review Policy (LMRP).

Jurisdictional Prerequisites for Judicial Review of Medicare Claims

Application: Judicial review of Medicare claims is contingent upon the presentment of claims to the Secretary and the exhaustion of administrative remedies, as emphasized by Supreme Court precedent.

Reasoning: The Supreme Court has established that both presentment and exhaustion of administrative remedies are jurisdictional prerequisites for judicial review of Medicare claims.

Post-1986 Amendments to Medicare Act and Judicial Review

Application: The Court determined that amendments to the Medicare Act extended administrative hearings and judicial review for Part B claims, aligning them with Part A claims, thus invalidating previous distinctions regarding the method of determining benefits.

Reasoning: Following this ruling, Congress amended the Medicare Act, permitting administrative hearings and judicial review for Part B claims similarly to Part A claims under 405(g).

Rejection of Procedural Bypass in Exhaustion Requirements

Application: The Court reiterated that framing claims as 'procedural' does not exempt them from the exhaustion requirement, maintaining Ringer's authoritative status over Michigan Academy.

Reasoning: It emphasizes that Ringer specifically rejected the notion that plaintiffs could bypass exhaustion by framing claims as 'procedural.'