District Judge Joseph F. Bianco


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New York firm Nat’l Gov’t Servs. Inc. (NGS) administers Medicare programs, payments, and services. In 2014 a jury acquitted Rafiy of an indictment charging he defrauded NGS of $14,899. The court dismissed NGS from Rafiy’s 42 USC §§1983 and 1985 action. It found NGS an entity of the federal government. As a Medicare administrative contractor, NGS is considered an agent of the Secretary of Health and Human Services. Further, Bivens claims against NGS must be dismissed because sovereign immunity bars suits against federal agencies. In further dismissing all §1983 claims NGS, the court found the Centers for Medicare and Medicaid Services, a federal agency, the litigation’s real party in interest. The §1985 conspiracy claim against NGS was dismissed because NGS was entitled to official immunity for acts taken in its capacity as a Medicare contractor. To the extent Rafiy’s prosecution stemmed from alleged Medicare fraud, Pani v. Empire Blue Cross Blue Shield, 152 F. 3d 67, determined that such conduct is immune from suit because the “investigation and reporting of possible Medicare fraud is [] the type of delegated discretionary function that the public interest requires to be protected by immunity.”