Advocate Christ Medical Center et al. v. Kennedy, Secretary of Health and Human Services
No. 23-715 · Decided April 29, 2025 · affirmed
How should the phrase “entitled to supplementary security income benefts . . . under subchapter XVI” be interpreted when calculating the Medicare fraction for a hospital's disproportionate share hospital (DSH) adjustment? In calculating the Medicare fraction for the DSH adjustment, an individual is “entitled to [SSI] benefts” only when she is eligible to receive an SSI cash payment during the month of her hospitalization.
Vote & lineup7–2 on the judgment. Barrett delivered the opinion of the Court, joined by Roberts, Thomas, Alito, Kagan, Gorsuch, Kavanaugh (7). Dissent(s): Jackson (joined by Sotomayor).
The question
How should the phrase “entitled to supplementary security income benefts . . . under subchapter XVI” be interpreted when calculating the Medicare fraction for a hospital's disproportionate share hospital (DSH) adjustment? Specifically, does this include all patients enrolled in the SSI system or only those eligible for a cash payment during their month of hospitalization? The resolution determines the amount of additional funding hospitals receive for treating low-income Medicare patients under 42 U.S.C. § 1395ww(d).
Petitioner's argument
- The phrase "entitled to [SSI] benefits" should encompass all patients enrolled in the SSI system at the time of hospitalization, regardless of whether they were entitled to a cash payment during that specific month.
- SSI benefits include non-cash benefits, such as vocational rehabilitation services and continued Medicaid coverage under 42 U.S.C. § 1382h(b).
- Eligibility for SSI benefits persists from the moment an individual enters the system until they have been ineligible for a cash payment for 12 consecutive months, per 42 U.S.C. § 1383(j)(1)(B).
- A broader interpretation better advances Congress's purpose of providing critical funding to hospitals that serve a disproportionately high percentage of the neediest patients.
Respondent's argument
- The phrase refers only to patients who are entitled to receive an SSI cash payment during the month in which they were hospitalized.
- SSI benefits under subchapter XVI are fundamentally cash benefits, as evidenced by the statutory language regarding payments and dollar amounts.
- Statutory eligibility for these benefits is determined on a monthly basis based on the individual's income and resources for that specific month.
The decision
- The Court held that an individual is “entitled to [SSI] benefts” for purposes of the Medicare fraction when she is eligible to receive an SSI cash payment during the month of her hospitalization.
- The Court reasoned that SSI benefits are strictly cash benefits, noting that 42 U.S.C. § 1381a states eligible individuals "shall . . . be paid benefts" and 42 U.S.C. § 1382(b)(1) quantifies these benefits in specific dollar amounts.
- The Court determined that eligibility is a monthly inquiry, citing 42 U.S.C. § 1382(c)(1), which mandates that eligibility "for a month shall be determined" based on characteristics "in such month."
- Following *Becerra v. Empire Health Foundation*, the Court treated the term “entitled” as synonymous with “qualifying” or “being eligible.”
- The Court rejected the argument that non-cash benefits count, finding that vocational rehabilitation services are housed under subchapter XI (42 U.S.C. § 1320b–19) rather than subchapter XVI, and Medicaid coverage under 42 U.S.C. § 1382h(b) merely aids in the administration of the Medicaid program (subchapter XIX).
- The Court dismissed the theory that eligibility lasts until a 12-month reapplication period, ruling that 42 U.S.C. § 1383(j)(1)(B) is a housekeeping measure and does not override the monthly determination required by 42 U.S.C. § 1382(c).
- The Court distinguished *Empire Health* by noting that Medicare Part A provides automatic, ongoing insurance, whereas SSI benefits are welfare payments that fluctuate based on monthly income and resources.
- Finally, the Court refused to rewrite the statutory formula to better achieve a policy goal, citing *Bartenwerfer v. Buckley* for the principle that "no statute pursues a single policy at all costs."
Separate opinions
Jackson, dissenting (joined by Sotomayor)
- Argues that SSI is an "income-insurance program" where "entitlement" refers to being enrolled in the safety net and having a right to receive payments when income falls below a threshold, regardless of whether a payment was triggered in a specific month.
- Contends that *Becerra v. Empire Health Foundation* should control because it held that entitlement to Medicare Part A exists if basic statutory criteria are met, even without actual payment for a given day's treatment.
- Asserts that the majority's rule is arbitrary and ignores the legislative objective of identifying hospitals serving the neediest populations by focusing on monthly cash flow rather than general low-income status.