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.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT · Argued November 5, 2024
Parties — Petitioner: ADVOCATE CHRIST MEDICAL CENTER et al. · Respondent: KENNEDY, SECRETARY OF HEALTH AND HUMAN SERVICES
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).
Who prevailed — The respondent prevailed on the interpretation of the phrase “entitled to supplementary security income benefts . . . under subchapter XVI.”
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.