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By Mae Slater on
 June 8, 2024

Supreme Court Decides U.S. Owes Tribes Extra Health Funds

In a landmark ruling, the Supreme Court decided that the federal government must allocate more money to cover administrative costs for Native American tribes that manage their own health-care programs.

SCOTUS Blog reported that this verdict, reached by a narrow 5-4 margin, was influenced by Justice Neil Gorsuch's deciding vote and supports previous rulings by federal appeals courts.

The Supreme Court's decision, made on Thursday, obligates the federal government to provide additional funding for the administrative expenses faced by Native American tribes operating their health-care facilities. The verdict was passed by a slim majority, with a 5-4 vote.

Critical Decision On Tribal Health Care Funding

Justice Neil Gorsuch played a significant role in this ruling by casting the pivotal vote. Chief Justice John Roberts authored the majority opinion, while Justice Brett Kavanaugh penned a dissenting opinion. The ruling reaffirmed decisions previously made by two federal appeals courts.

The Indian Self-Determination and Education Assistance Act forms the basis of this ruling. This Act allows Native American tribes to enter into agreements with the Indian Health Service (IHS) to manage their health-care programs. Specifically, the San Carlos Apache Tribe and the Northern Arapaho Tribe were central to the cases considered by the Court.

The ruling resolves a crucial issue regarding whether the IHS must reimburse tribes for costs incurred from Medicare, Medicaid, and private insurers. The Court concluded that both direct and indirect contract support costs should be reimbursed under federal law.

Chief Justice Roberts made it clear in the majority opinion, spanning 18 pages, that such expenses must be repaid because they arise from the tribes' contracts with the IHS. He dismissed the government's stance, noting that failing to cover these costs would impose a penalty on tribes striving for increased self-determination.

Roberts emphasized that a ruling against the tribes would result in a "systemic funding shortfall" and act as a deterrent for tribes pursuing self-determination. He firmly stated that the government's argument was inconsistent with the Act and its intended purpose.

Diverging Views On Financial Implications

Justice Kavanaugh, in his dissenting opinion, joined by Justices Clarence Thomas, Samuel Alito, and Amy Coney Barrett, expressed concerns about the financial consequences of this decision. He argued that the ruling could lead to costs between $800 million and $2 billion.

Kavanaugh expressed that the extra federal funds approved by the Court would not be available without repercussions. He urged Congress to consider significantly increasing the budget for all Native American health-care programs, while noting that this would necessitate difficult financial trade-offs.

The dissenting opinion also highlighted that appropriations decisions should be the responsibility of Congress and the president, not the judiciary. Kavanaugh pointed out that the majority's decision overturns a long-standing interpretation by the executive branch, which Congress has not challenged.

The broader impact of the Court's ruling extends to all Native American tribes engaged in health-care programs under the Indian Self-Determination and Education Assistance Act. By ensuring reimbursement for administrative costs, the ruling supports tribes in managing effective and responsive health-care programs.

Chief Justice Roberts underscored that tribes should not be penalized for opting for self-governance, as it provides them with a significant voice in planning and implementing health-care initiatives that address the true needs of their communities.

This landmark decision highlights the federal government’s obligation to support Native American tribes in their efforts towards self-determination and effective program management. The ruling also mitigates systemic funding shortfalls that could undermine tribal health systems.

Conclusion

The Supreme Court's ruling on Thursday mandates the federal government to provide extra funds to cover administrative expenses incurred by Native American tribes managing their health-care programs.

Chief Justice John Roberts emphasized that denying these costs would penalize tribes pursuing self-determination.

While Justice Brett Kavanaugh raised concerns over financial strains, the ruling reaffirms the tribes' contractual rights under the Indian Self-Determination and Education Assistance Act, aiming to ensure responsive and effective healthcare management for tribal communities.

Written By:
Mae Slater

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