Patricia Haro v. Kathleen Sebelius

Secretary of Health and Human Services Kathleen Sebelius appeals the district court’s order certifying a nationwide class of Medicare beneficiaries and granting summary judgment in the beneficiaries’ favor. Patricia Haro, Jack McNutt, and Troy Hall are named plaintiffs. John Balentine was Haro’s lawyer in her underlying personal injury suit.

Before the district court, the beneficiaries raised two claims: (1) the Secretary’s practice of demanding “up front” reimbursement for secondary payments from beneficiaries who have appealed a reimbursement determination or sought waiver of the reimbursement obligation is inconsistent with the secondary payer provisions of the Medicare statutory scheme; and (2) the Secretary’s practice violates their due process rights. Balentine separately claimed the Secretary’s practice of demanding that attorneys withhold settlement proceeds from beneficiary-clients until Medicare is reimbursed is also inconsistent with the secondary payer provisions.

The district court agreed with the beneficiaries. The court enjoined the Secretary from seeking up front reimbursement of Medicare secondary payments from beneficiaries who have received payment…