Summary

Portrait of Antonin Scalia Antonin Scalia Sullivan v. Everhart — Opinion of the Court

Respondents nevertheless maintain, as did the Court of Appeals, that another provision of the Act directly precludes the Secretary from netting underpayments and overpayments. They point to § 204 (b) , 42 U.S.C. § 404 (b) (1982 ed.) , which provides: "In any case in which more than the correct amount of payment has been made, there shall be no adjustment of payments to, or recovery by the United States from, any person who is without fault if such adjustment or recovery would defeat the purpose of this subchapter or would be against equity and good conscience."
Source: Wikisource

Portrait of Antonin Scalia Antonin Scalia Sullivan v. Everhart — Opinion of the Court

Since the Act reasonably bears the Secretary's interpretation that netting is permitted, only one issue remains: Respondents contend that the manner in which the regulations provide for netting to be conducted is arbitrary and capricious, because of their definition of the netting period. Overpayments are netted with underpayments up to the "month [of] the initial determination" of error. 20 CFR § 416.538 (1989) . "Initial determination" is a term of art meaning the Secretary's formal determination that an error was committed.
Source: Wikisource

Portrait of Antonin Scalia Antonin Scalia Sullivan v. Everhart — Opinion of the Court

Elsewhere, it confers upon the Secretary general authority to "make rules and regulations and to establish procedures, not inconsistent with the provisions of this subchapter, which are necessary or appropriate to carry out such provisions," Act § 205 (a) , 42 U.S.C. § 405 (a) (1982 ed.) ; see also Act § 1631 (d) (1) , 42 U.S.C. § 1383 (d) (1) (1982 ed., Supp. V) (SSI) . Pursuant to that authority, the Secretary promulgated the regulations at issue here.
Source: Wikisource

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