California Spine and Neurosurgery Institute v. National Association of Letter Carriers Health Benefit Plan

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

CALIFORNIA SPINE AND Case No. 20-cv-08511-VC

NEUROSURGEY INSTITUTE,

Plaintiff, ORDER DENYING MOTION TO

REMAND

v. Re: Dkt. No.

NATIONAL ASSOCIATION OF LETTER

CARRIERS HEALTH BENEFIT PLAN, et al., Defendants.

This remand motion presents three fairly complicated questions relating to the federal officer removal statute, 28 U.S.C. § 1442(a). This ruling answers those questions as follows:

• A private carrier and any of its subcontractors hired by the Office of Personnel Management to help administer a health benefits plan for federal employees is typically “acting under” the authority of that federal agency within the meaning of the federal officer removal statute.

• Under Ninth Circuit precedent that is analytically flawed and potentially erroneous, when a private health provider sues the carrier and/or its subcontractors under state law for failure to live up to a promise to reimburse the provider for care provided to a covered federal employee, there is typically no colorable federal preemption defense.

• However, when a private health provider brings this type of lawsuit against…