Interest on Past Due Medical Bills (BMI) and
Penalties
I. Generally
In cases where the miner is initially adjudicated
as totally disabled due to pneumoconiosis, but the responsible operator either (1)
contests the miner's entitlement to compensation and medical benefits, or (2)
disputes whether certain medical treatment is related to the miner's black lung
condition, then the Director, OWCP will make interim payments for the miner's
medical bills from the Black Lung Disability Trust Fund.
Once the miner is finally adjudicated as being entitled
to such medical services, Subsection 934(b)(1) of the Black Lung Benefits Act
creates an obligation on the part of employers for repayment to the United
States of all benefits and interest paid by the Trust Fund. 30 U.S.C. § 934(b)(1).
Subsection 934(b)(1) further provides that failure to repay the obliged amount
creates "a lien in favor of the United States for such amount . . .."
30 U.S.C. § 934(b)(1).
II. Jurisdiction
Once a final determination is made that benefits
are owed, the administrative law judge has discharged his or her
responsibilities under the Act. Assessment and enforcement of the payment of
interest or penalties, which includes a legal determination of the date on
which interest accrues, properly lies with the appropriate federal district
court.
The amended regulations at 20 C.F.R. § 725.530 (2008)
provide that "[a]n operator that fails to pay any benefits that are due,
with interest, shall be considered in default with respect to those benefits,
and the provisions of § 725.605 of this part shall be applicable. In addition,
a claimant who does not receive any benefits within 10 days of the date they
become due is entitled to additional compensation equal to twenty percent of
those benefits (see § 725.607)." 20 C.F.R. § 725.530(a) (2008).
A.
Benefits Review Board
In Wade v. Island Creek Coal Co., BRB No. 93‑549
BLA (Feb. 22, 1996) (unpub.), the Board held that neither it nor the
administrative law judge has jurisdiction over issues involving the computation
of interest assessed against the employer for reimbursements owed to the Trust
Fund. See also Brown v. Sea "B" Mining Co., 17 B.L.R.
1‑115 (1993)(en banc); Balaban v. Duquesne Light Co., 16 B.L.R. 1‑120
(1992).
Citing the Sixth Circuit's holding in The
Youghiogheny and Ohio Coal Co. v. Vahalik, 970 F.2d 161 (6th
Cir. 1992), the Board, in Brown, concluded that "[o]nce final
eligibility and liability determinations are made, . . . the benefit of agency
expertise becomes irrelevant, and jurisdiction is vested in the federal
district court for the enforcement of the agency orders."
B.
Third Circuit
The Third Circuit, in Bethenergy Mines v.
Director, OWCP, 32 F.3d 843 (3rd Cir. 1994), followed the Sixth
Circuit's lead in Vahalik v. Youghiogheny & Ohio Coal Co., 970 F.2d
161 (6th Cir. 1992) to hold that neither the administrative law
judge nor Benefits Review Board has jurisdiction to decide interest assessment
issues.
C.
Sixth Circuit
In Youghiogheny, the Sixth Circuit concluded
that, pursuant to Subsection 932(a) of the Act, neither the Office of
Administrative Law Judges nor the Benefits Review Board has subject‑matter
jurisdiction over enforcement actions for interest payments owed to the Trust
Fund. In a related case, the Board in Bertinotti v. Mathias
Coal Co., 16 B.L.R. 1-16 (1991) concluded that a penalty assessment under
Section 14(f) lay with the appropriate federal district court where there are
no unresolved questions of fact. See also Ayers v. Peabody Coal Co., 17
B.L.R. 1‑124 (1993)(en banc order).
