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Bruce v. Azar

Citation: 389 F. Supp. 3d 716Docket: Case No. 18-cv-05022-HSG

Court: District Court, N.D. California; June 18, 2019; Federal District Court

Narrative Opinion Summary

The case involves a judicial review sought by a Medicare beneficiary challenging the denial of coverage for the drug Serostim by the Medicare Appeals Council (MAC). The plaintiff filed claims against the Secretary of the Department of Health and Human Services (DHHS), Envision Insurance Company, and Blue Shield of California, alleging improper denial of coverage, due process violations, and discrimination. The court granted motions to dismiss by Envision and Blue Shield, citing that they are not proper defendants under the Medicare Act, which designates the DHHS Secretary as the sole defendant. The court also dismissed the plaintiff's claims under Rule 12(b)(1) for lack of subject matter jurisdiction and under Rule 12(b)(6) for failure to state a claim. Furthermore, the court denied the plaintiff's motions to supplement the administrative record, as the plaintiff could not demonstrate that the record was incomplete or warranted supplementation under recognized exceptions. The court granted DHHS's motion to seal the administrative record due to compelling privacy concerns and scheduled a case management conference. Ultimately, the court's rulings underscore the procedural strictures governing Medicare-related judicial reviews and the limitations on judicial intervention established by Section 405(h) of the Social Security Act.

Legal Issues Addressed

Completion and Supplementation of Administrative Records

Application: The court denies the plaintiff's motions to supplement the administrative record, as the plaintiff did not provide clear evidence that the record was incomplete or that exceptions applied.

Reasoning: The plaintiff failed to present clear evidence rebutting the presumption of a complete AR and did not satisfactorily demonstrate that any exceptions applied.

Exclusivity of Judicial Review under Section 405(h)

Application: The plaintiff's constitutional and statutory claims are dismissed due to Section 405(h), which restricts judicial review to specific procedures under the Medicare Act.

Reasoning: The Supreme Court's interpretation of Section 405(h) emphasizes that it establishes exclusive judicial review under Section 405(g) for claims 'arising under' the Medicare Act.

Judicial Review of Medicare Appeals

Application: The court addresses the limitations on judicial review for Part D beneficiaries, emphasizing that only the Secretary of HHS is a proper defendant in appeals related to Medicare coverage decisions.

Reasoning: A Part D beneficiary can seek court review of the MAC's decision if the amount in controversy meets the DHHS's annual threshold, with the Secretary of HHS as the proper defendant in such cases.

Pleading Requirements under Rule 12(b)(6)

Application: The plaintiff's claims were dismissed for failing to state a claim upon which relief can be granted, as the allegations did not provide sufficient factual basis for liability.

Reasoning: For a claim to survive, it must plead sufficient facts that are plausible on their face, allowing the court to reasonably infer the defendant's liability.

Sealing of Judicial Records

Application: The court grants DHHS's motion to seal the administrative record, citing compelling privacy interests that outweigh the public's right to access.

Reasoning: The Court found that the Department of Health and Human Services (DHHS) demonstrated a compelling interest in sealing the entire administrative record due to the inclusion of Plaintiff's medical records and private information.

Subject Matter Jurisdiction under Rule 12(b)(1)

Application: The court lacks subject matter jurisdiction over the plaintiff's claims against Envision and Blue Shield, as the statutory review process designates the Secretary of DHHS as the sole defendant.

Reasoning: The motions to dismiss assert that Envision and Blue Shield are not proper defendants and that Bruce has not provided sufficient facts for his claims.