Empire HealthChoice Assurance, Inc. v. McVeigh

547 U.S. 677 (2006)

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Empire HealthChoice Assurance, Inc. v. McVeigh

United States Supreme Court
547 U.S. 677 (2006)

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Facts

In accordance with the Federal Employee’s Health Benefits Act of 1959 (FEHBA), Empire HealthChoice Assurance, Inc. (petitioner) contracted with the federal government to provide health benefits to federal employees and was required to seek reimbursement of paid benefits from liable third parties. Denise Finn McVeigh (respondent) was administrator of the estate of her decedent husband, a former enrollee in this health plan. During an impending state-court litigation, McVeigh and the parties alleged to have caused the decedent’s injuries entered into a settlement agreement. Upon learning of the settlement agreement, Empire sought to recover monies paid to cover the decedent’s medical care. When McVeigh failed to pay, Empire brought suit in federal court asserting its right to reimbursement. McVeigh moved to dismiss the suit for lack of subject-matter jurisdiction. The district court and Second Circuit Court of Appeals agreed and dismissed the case.

Rule of Law

Issue

Holding and Reasoning (Ginsburg, J.)

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