Health Care Service Corp. v. Califano
Health Care Service Corp. v. Califano
Opinion of the Court
This case presents the question of whether the Secretary of the Department of Health, Education and Welfare was authorized by 42 U.S.C. § 1395b-l to enter into an experimental contract for administration of Illinois Medicare Part B with a company that is not shown by the present record to be a “carrier” as defined by 42 U.S.C. § 1395u(f). Also presented is the question of whether the plaintiffs, two disappointed bidders, are barred from asserting their action challenging the award of the contract to another because they did not file it until after the award had been made.
The district court entered summary judgment for defendants, holding that the action was not timely under Airco, Inc. v. Energy Research and Development Administration, 528 F.2d 1294 (7th Cir. 1975), and, alternatively, that the statute permitted the Secretary to award the experimental contract to a non-carrier (and therefore the fact issue of whether the successful bidder was a carrier was immaterial). Health Care Service Corp. v. Califano, 466 F.Supp. 1190 (N.D.Ill. 1979).
We disagree with the district court’s holding that Aireo bars this action. In that case the procurement authority ordered rebidding with changed specifications. The initially successful bidder sought neither timely
We do agree, however, with the district court’s holding on the merits and adopt that part of the court’s opinion that holds that the Secretary had authority to award the contract to a non-carrier. 466 F.Siipp. at 1194 (last seven lines) — 1197 (first 24 lines). We add only that the interpretation of a complex statute such as the Medicare Act by the administrative officer charged with the responsibility of administering it is entitled to considerable deference and, if reasonable, is not to be rejected by a court merely because another interpre
The judgment is therefore affirmed.
Affirmed.
. Claims asserted in the district court concerning the methodology employed by defendants in assessing the bid proposals are not pursued on appeal.
. The court’s conclusion to this effect was challenged on rehearing. In a footnote the court found the record inadequate to support this challenge but stated that “[t]he failure to file a timely informal protest was . . . merely an alternative ground” on which the court did not need to rely.
Reference
- Full Case Name
- HEALTH CARE SERVICE CORPORATION, an Illinois Corporation, and Continental Casualty Company, an Illinois Corporation, Intervening v. Joseph A. CALIFANO, Jr., Secretary of Health, Education and Welfare, and Robert A. Derzon, Administrator, Health Care Financing Administration
- Cited By
- 14 cases
- Status
- Published