Stephenson

We must decide whether the Medicare Act, in sections found at 42 U.S.C. §§ 1395ec(a)(2)(A), 1395u(b)(3), 1395x(v)(l)(K), compels the Secretary of Health and Human Services to impose a cap on hospital outpatient charges. We conclude that it does not, and affirm the order of the district court.

I

The appellants are a certified class of Medicare beneficiaries. They brought this action alleging that the Secretary had violated various provisions of the Medicare Act, the Administrative Procedure Act and the Constitution. All of their claims were dismissed, except for those based upon a violation of the Medicare Act. The Medicare Act claims were dismissed separately in an order granting summary judgment for the Secretary. We now consider this order alone. The question presented is whether the Medicare Act requires hospitals to charge no more than a “reasonable” amount for services rendered under Medicare’s “Part B.” The appellants seek an order compelling the Secretary to ensure that hospitals comply with this command.

Medicare is a vast and complicated federal program. Congress established the Medicare program in 1965 to provide “Federal Health Insurance for the Aged and Disabled.”…