Kip Hayes v. Prudential Insurance Company of America, National League of Postmasters of the United States

This is an appeal from summary judgments granted in two consolidated cases, Kip Hayes v. Prudential Insurance Co., No. 85-5527 (D.C. No. 84-1245), and National League of Postmasters of the United States v. United States Office of Personnel Management and Nobel Hayes, No. 85-5528 (D.C. No. 84-0341). We are asked to review the district court’s rulings that federal employee health benefits lawfully may be reduced from year to year, and that the Federal Employee Health Benefits Act preempts state law tort and contract actions.

Though we are moved by the compelling circumstances surrounding Kip Hayes and his family, we find that the statute and health benefits plan we are called upon to construe require an unmistakable result. Until Congress acts to ensure continued coverage for federal enrollees who require long-term care, this court will be powerless to provide appellant with the remedy he seeks.

We affirm the district court.

I. THE FEDERAL EMPLOYEE HEALTH BENEFITS ACT

The Federal Employee Health Benefits Act (FEHBA) established a comprehensive program to provide federal employees and retirees with subsidized health care benefits. 5 U.S.C. §§ 8901-8913 (1982 & Supp. 1987). Under…