Advocate Christ Medical Center v. Kennedy, 605 U.S. ___ (2025)
A group of over 200 hospitals claimed that the Department of Health and Human Services (HHS) miscalculated their Disproportionate Share Hospital (DSH) adjustments, which provide additional funding to hospitals treating a high percentage of low-income patients. The dispute centered on the interpretation of the phrase "entitled to supplementary security income (SSI) benefits" under subchapter XVI. The hospitals argued that this phrase should include all patients enrolled in the SSI system at the time of hospitalization, even if they were not entitled to an SSI payment during that month. HHS, however, interpreted it to mean patients who were eligible to receive an SSI payment during the month of hospitalization.
The Provider Reimbursement Review Board denied the hospitals' request for additional reimbursement on procedural grounds, and the Centers for Medicare & Medicaid Services denied relief on the merits. The District Court rejected the hospitals' claims and granted summary judgment to HHS. The D.C. Circuit affirmed, concluding that SSI benefits are about cash payments for needy individuals and that it makes little sense to say individuals are entitled to the benefit in months when they are not eligible for a payment.
The Supreme Court of the United States held that an individual is "entitled to [SSI] benefits" for purposes of the Medicare fraction when she is eligible to receive an SSI cash payment during the month of her hospitalization. The Court reasoned that SSI benefits are cash benefits determined on a monthly basis, and eligibility for such benefits is also determined monthly. The Court affirmed the judgment of the D.C. Circuit, respecting the specific formula that Congress prescribed for calculating the Medicare fraction.
For the purposes of the Medicare fraction, an individual is entitled to SSI benefits when she is eligible to receive an SSI cash payment during the month of her hospitalization.
SUPREME COURT OF THE UNITED STATES
Syllabus
ADVOCATE CHRIST MEDICAL CENTER et al. v. KENNEDY, SECRETARY OF HEALTH AND HUMAN SERVICES
certiorari to the united states court of appeals for the district of columbia circuit
No. 23–715. Argued November 5, 2024—Decided April 29, 2025
When hospitals provide inpatient services to Medicare beneficiaries, the Medicare program pays those hospitals a fixed rate for treating each Medicare patient. See 42 U. S. C. §§1395ww(d)(1)–(4). Congress also provides various hospital-specific rate adjustments, including the “disproportionate share hospital” (DSH) adjustment, which offers additional funding to hospitals that treat a high percentage of low-income patients. To calculate the DSH adjustment, the Department of Health and Human Services (HHS) adds together two statutorily prescribed fractions referred to as the Medicare fraction and the Medicaid fraction. §1395ww(d)(5)(F)(vi). The Medicare fraction “represents the proportion of a hospital’s Medicare patients who have low incomes,” and the Medicaid fraction “represents the proportion of a hospital’s patients who are not entitled to Medicare and have low incomes.” Becerra v. Empire Health Foundation, for Valley Hospital Medical Center, 597 U.S. 424, 429–430. When the Medicare fraction is expressed as a percentage and added to the Medicaid fraction’s percentage, the sum yields the disproportionate patient percentage. §1395ww(d)(5)(F)(vi). That percentage, in turn, determines whether a hospital will receive a DSH adjustment—and if so, how much.
Relevant here, the numerator of the Medicare is defined by the statute as “the number of [a] hospital’s patient days” attributable to patients “who (for such days) were entitled to benefits under [Medicare] part A” and “entitled to supplementary security income [SSI] benefits . . . under subchapter XVI.” §1395ww(d)(5)(F)(vi)(I). This Court in Empire Health has held that the phrase “ ‘entitled to [Medicare Part A] benefits’ ” in the Medicare fraction includes “all those qualifying for the program, regardless of whether they are receiving Medicare payments for part or all of a hospital stay.” 597 U. S., at 445 (quoting §1395ww(d)(5)(F)(vi)(I); alteration in original). But the Court has not addressed the issue presented in this case—i.e., which patients count as being “entitled to [SSI] benefits . . . under subchapter XVI.” HHS interprets the language to mean patients who are entitled to receive an SSI payment during the month in which they were hospitalized. Petitioners—a group of more than 200 hospitals—insist that the phrase includes all patients enrolled in the SSI system at the time of their hospitalization, even if they were not entitled to an SSI payment during their month of hospitalization. The hospitals claim that, as a result of HHS’s misinterpretation of the phrase, HHS miscalculated the hospitals’ DSH adjustment and underfunded the hospitals from 2006 to 2009. The hospitals have lost at every stage of this litigation, including most recently before the D. C. Circuit. The D. C. Circuit concluded that SSI benefits in “subchapter XVI [are] about cash payments for needy individuals,” and that “it makes little sense to say that individuals are ‘entitled’ to the benefit in months when they are not even eligible for [a payment].” Advocate Christ Medical Center v. Becerra, 80 F. 4th 346, 352–353. The Court granted certiorari.
Held: In calculating the Medicare fraction, an individual is “entitled to [SSI] benefits” for purposes of the Medicare fraction when she is eligible to receive an SSI cash payment during the month of her hospitalization. Pp. 6–16.
(a) SSI benefits are cash benefits. See 42 U. S. C. ch. 7, subch. XVI. Section 1381a, which describes the basic entitlement to benefits, provides that “[e]very . . . individual who is determined . . . to be eligible on the basis of his income and resources shall . . . be paid benefits.” (Emphasis added.) The word “paid” connotes cash. Section 1382(b)(1), which specifies the amount that the Social Security Administration must pay to eligible individuals, states that the benefits “shall be payable at the rate of [specific dollar amounts].” A benefit quantified in dollar amounts is plainly a cash benefit. Similarly, subchapter XVI’s codified statement of purpose is “to provide supplemental security income to individuals.” §1381 (emphasis added).
Just as subchapter XVI makes clear that SSI benefits are cash benefits, it also establishes that eligibility for such benefits is determined on a monthly basis. Section 1382(c)(1) provides that “[a]n individual’s eligibility for a benefit under this subchapter for a month shall be determined” based on the individual’s “income, resources, and other relevant characteristics in such month.” The statute’s reference to termination of benefits also refers back to months of ineligibility, stating that an individual must reapply for the program after she has been “ineligible for benefits . . . for a period of 12 consecutive months.” §1383(j)(1)(B).
Finally, although subchapter XVI speaks primarily in terms of eligibility for SSI benefits, the Medicare fraction focuses on whether an individual is entitled to such benefits. Nothing turns on this difference. In Empire Health, the Court treated the word “entitled” in the Medicare statute as synonymous with “qualifying” for or “being eligible . . . for benefits.” 597 U. S., at 435. This case also involves the Medicare fraction, so the Court follows the same course. Because eligibility for an SSI payment is determined on a monthly basis, an individual is considered “entitled to [SSI] benefits” for purposes of the Medicare fraction when she is eligible for such benefits during the month of her hospitalization. Pp. 6–9.
(b) The hospitals’ broader reading of “entitled to [SSI] benefits” fails. Pp. 9–16.
(1) While the hospitals characterize SSI benefits as including noncash benefits—e.g., vocational rehabilitation services and continued Medicaid coverage—these noncash benefits do not fit the description of a “supplementa[l] security income” benefit. §1395ww(d)(5)(F)(vi)(I) (emphasis added). Further, none of the noncash benefits identified by the hospitals is housed “under subchapter XVI.” Ibid. (emphasis added). The hospitals’ reliance on the Ticket to Work and Self-Sufficiency Program falls short for this reason. Nor do any of subchapter XVI’s other references to vocational rehabilitation services confer an SSI benefit. Rather, §1382d’s references to certain services point to benefits housed elsewhere, but not within subchapter XVI.
The hospitals’ reliance on continued Medicaid coverage pursuant to §1382h(b) also falls flat. In most States, eligibility for SSI benefits qualifies an individual for Medicaid coverage. While losing SSI benefits generally means losing Medicaid coverage, §1382h(b) allows certain people ineligible for SSI benefits in a given month to be treated as if they remain eligible for SSI benefits so that they can continue receiving Medicaid. But §1382h(b), which by its terms applies only to Medicaid (i.e., “subchapter XIX”), simply aids in the administration of the Medicaid program. It does not create an SSI benefit. Pp. 9–11.
(2) The hospitals advance a second argument that eligibility for SSI benefits—even for purely cash benefits—begins when a person enters the SSI system and continues until the individual is ineligible for an SSI payment for 12 consecutive months. While it is true that a person first applying for benefits must disclose her income “rate” “for the calendar year,” §1382(a)(1)(A), that “calendar year” income does not render her eligible for SSI benefits, nor does it establish that SSI benefits operate in intervals with a duration longer than one month. Instead, the statute clearly directs eligibility decisions to be made monthly based on “the individual’s . . . income, resources, and other relevant characteristics in such month.” §1382(c) (emphasis added). Nor does the reapplication requirement change the nature of eligibility. Under §1383(j)(1)(B), a once-eligible individual must submit a new application after she has been “ineligible for benefits . . . for a period of 12 consecutive months.” That provision does not state that a person remains eligible during this period; it states that a person who “was an eligible individual” at one point must reapply after 12 consecutive months of ineligibility. §1383(j)(1)(A) (emphasis added).
The hospitals also assert that Empire Health supports their theory that being “entitled to [SSI] benefits” means that a patient is entitled to SSI benefits even if she does not qualify for a payment during the month of hospitalization. Not so. Just as Empire Health turned on the specific features of Medicare Part A, this case turns on the specific features of SSI benefits under subchapter XVI. Unlike Medicare Part A, which provides automatic, ongoing health insurance that “never goes away” absent diminished disability, Empire Health, 597 U. S., at 437, SSI benefits require recipients to apply for and be deemed eligible for benefits, and recipients can (and do) fluctuate in and out of eligibility based on monthly income and resources. Consistency with Empire Health’s benefit-focused analysis thus requires the Court to recognize and give effect to the differences between Medicare Part A and SSI benefits. Pp. 11–14.
(3) Finally, invoking statutory purpose, the hospitals argue that their broad reading of “entitled to [SSI] benefits” better advances Congress’s goal of providing additional funds to hospitals that serve a disproportionately high percentage of needy Medicare patients. But “[n]o statute pursues a single policy at all costs,” Bartenwerfer v. Buckley, 598 U.S. 69, 81, and the Court must respect the specific formula that Congress prescribed. Pp. 14–16.
80 F. 4th 346, affirmed.
Barrett, J., delivered the opinion of the Court, in which Roberts, C. J., and Thomas, Alito, Kagan, Gorsuch, and Kavanaugh, JJ., joined. Jackson, J., filed a dissenting opinion, in which Sotomayor, J., joined.
Adjudged to be AFFIRMED. Barrett, J., delivered the opinion of the Court, in which Roberts, C. J., and Thomas, Alito, Kagan, Gorsuch, and Kavanaugh, JJ., joined. Jackson, J., filed a dissenting opinion, in which Sotomayor, J., joined. |
Argued. For petitioners: Melissa Arbus Sherry, Washington, D. C. For respondent: Ephraim McDowell, Assistant to the Solicitor General, Department of Justice, Washington, D. C. |
Reply of Advocate Christ Medical Center, et al. submitted. |
Reply of petitioners Advocate Christ Medical Center, et al. filed. (Distributed) |
Reply of petitioners Advocate Christ Medical Center, et al. filed. (Distributed) |
CIRCULATED |
Brief of respondent Xavier Becerra, Secretary of Health and Human Services filed. |
Brief of Becerra, Xavier submitted. |
Brief of respondent Xavier Becerra, Secretary of Health and Human Services filed. |
Motion to dispense with printing the joint appendix filed by petitioners GRANTED. |
Brief amicus curiae of Empire Health Foundation filed. |
Brief amici curiae of American Hospital Association, et al. filed. |
Brief amici curiae of Twenty-Six State and Regional Hospital Associations filed. |
Brief amici curiae of Twenty-Six State and Regional Hospital Associations filed. |
Brief amicus curiae of Empire Health Foundation filed. |
Brief amici curiae of American Hospital Association, et al. filed. |
Record received electronically from the United States Court of Appeals for the District of Columbia Circuit and available with the Clerk. |
Record received from the United States District Court for the District of Columbia. The record is electronic and is available on PACER. |
Brief of petitioners Advocate Christ Medical Center, et al. filed. |
Brief of petitioners Advocate Christ Medical Center, et al. filed. |
Record requested from the United States Court of Appeals for the District of Columbia Circuit. |
SET FOR ARGUMENT on Tuesday, November 5, 2024. |
Motion to dispense with printing the joint appendix filed by petitioners Advocate Christ Medical Center, et al. |
Motion to dispense with printing the joint appendix filed by petitioners Advocate Christ Medical Center, et al. |
Motion to extend the time to file the briefs on the merits granted. The time to file the joint appendix and petitioners' brief on the merits is extended to and including August 7, 2024. The time to file respondent's brief on the merits is extended to and including September 19, 2024. |
Motion for an extension of time to file the briefs on the merits filed. |
Motion for an extension of time to file the briefs on the merits filed. |
Petition GRANTED. |
DISTRIBUTED for Conference of 6/6/2024. |
DISTRIBUTED for Conference of 5/30/2024. |
DISTRIBUTED for Conference of 5/23/2024. |
Reply of petitioners Advocate Christ Medical Center, et al. filed. (Distributed) |
Reply of petitioners Advocate Christ Medical Center, et al. filed. (Distributed) |
Brief of respondent Xavier Becerra, Secretary of Health and Human Services in opposition filed. |
Brief of respondent Xavier Becerra, Secretary of Health and Human Services in opposition filed. |
Motion to extend the time to file a response is granted and the time is further extended to and including April 18, 2024. |
Motion to extend the time to file a response from March 4, 2024 to April 18, 2024, submitted to The Clerk. |
Motion to extend the time to file a response from March 4, 2024 to April 18, 2024, submitted to The Clerk. |
Brief amici curiae of American Hospital Association, et al. filed. |
Brief amici curiae of American Hospital Association, et al. filed. |
Motion to extend the time to file a response is granted and the time is extended to and including March 4, 2024. |
Motion to extend the time to file a response from February 2, 2024 to March 4, 2024, submitted to The Clerk. |
Motion to extend the time to file a response from February 2, 2024 to March 4, 2024, submitted to The Clerk. |
Letter from counsel for petitioners pursuant to Rule 12.6 filed. |
Letter from counsel for petitioners pursuant to Rule 12.6 filed. |
Petition for a writ of certiorari filed. (Response due February 2, 2024) |
Petition for a writ of certiorari filed. (Response due February 2, 2024) |
Application (23A407) granted by The Chief Justice extending the time to file until December 29, 2023. |
Application (23A407) to extend the time to file a petition for a writ of certiorari from November 30, 2023 to December 29, 2023, submitted to The Chief Justice. |
Application (23A407) to extend the time to file a petition for a writ of certiorari from November 30, 2023 to December 29, 2023, submitted to The Chief Justice. |