empire healthchoice assurance dba empire blue cross blue shield mcveigh administratrix estate mcveigh argued april decided june federal employees health benefits act fehba office personnel management opm negotiates regulates plans federal employees see fehba provides government payment premiums enrollee payment rest premiums thus shared deposited special treasury fund carriers draw pay covered benefits fehba preemption provision provides terms contract chapter relate nature provision extent coverage benefits including payments respect benefits shall supersede preempt state local law relates health insurance plans act contains provision addressing carriers subrogation reimbursement rights fehba sole jurisdictional provision vests federal district courts original jurisdiction civil action claim opm regulation channels disputes coverage benefits federal designating opm sole defendant see cfr law opens federal courts carriers seeking reimbursement opm contracted blue cross blue shield association bcbsa provide nationwide health plan administered local companies plan plan obligates carrier make reasonable effort recoup amounts paid medical care statement benefits carrier distributes alerts enrollees recoveries receive must used reimburse plan benefits paid petitioner empire healthchoice assurance empire administers bcbsa plan applies federal employees new york state respondent denise mcveigh mcveigh administrator estate joseph mcveigh decedent former plan enrollee injured accident case originated tort suit brought mcveigh third parties alleged caused decedent injuries terminated settlement empire filed suit federal invoking authorizes jurisdiction civil actions arising laws empire sought reimbursement paid plan decedent medical care offset mcveigh attorney fees litigation costs tort action district granted mcveigh motion dismiss want jurisdiction second circuit affirmed holding empire claim arose state law observing fehba text authorize carriers vindicate federal rights enrollees contracts concluded federal jurisdiction exist federal common law governed empire claim quoting boyle technologies appeals stated courts may create federal common law state law ly federal interest empire maintained reimbursement claim implicated uniquely federal interest reimbursement directly affects treasury cost providing health benefits federal employees congress expressed interest maintaining uniformity among matters relating federal benefits acknowledged case involved interests found empire identified specific ways operation state law conflict materially policies underlying fehba circumstances presented also rejecting empire argument fehba preemption provision independently conferred federal jurisdiction emphasized makes reference federal right action federal jurisdiction reimbursement claim held section encompass empire suit pp case aris es federal law purposes complaint establishes either federal law creates cause action plaintiff right relief necessarily depends resolution substantial question federal law franchise tax bd cal construction laborers vacation trust southern pp clearfield trust provide basis federal jurisdiction clearfield government suit bank recover amount paid government check payee name forged held rights duties commercial paper issues governed federal rather state law decisions however made clear uniform federal law need always applied government litigation example kimbell foods declared prudent course often adopt readymade body state law federal rule decision congress strikes different accommodation reimbursement subrogation provisions contract linked together depend upon recovery third party terms conditions ordinarily governed state law focusing reimbursement appeals determined empire demonstrated significant conflict identifiable federal interest operation state law unless showing made cause displace state law much less lodge case federal pp empire amicus argue jackson transit authority transit union empire reimbursement claim arising contract federal claim congress intended rights duties stemming contract federal nature reliance placed jackson transit surprising determined claim issue union suit city agency enforce agreements parties made light urban mass transportation act umta conditioned city receipt federal funds preservation employees rights arise federal law instead governed state law applied state cour acknowledged prior decisions determin ing plaintiff stated federal claim sued vindicate contractual rights set forth federal statutes lacked express provisions creating federal causes action emphasis added however held cases control critical factor congressional intent behind particular provision issue ibid although indications umta made agreements contracts creatures federal law countervailing considerations primarily longstanding national labor relations act exemption labor relations local governments employees demonstrated congressional intent contrary measured jackson transit discussion claim arises federal law empire reimbursement claim creatur federal law distinctly federal elements involved countervailing considerations control particularly fehba jurisdictional provision opens federal door civil actions opm regulation cfr instructs enrollees seeking challenge benefit denials proceed federal opm carrier carrier subcontractors read together prescriptions ensure beneficiaries suits land federal congress found necessary proper extend federal jurisdiction reimbursement claims carriers insured workers easy enough say cf jackson transit noted private parties appropriate cases may sue federal enforce contractual rights created federal statutes jackson transit involved right fehba preemption prescription read provision prescription unusual renders preemptive contract terms health insurance plans provisions enacted congress prescription unusual order warrants cautious interpretation section puzzling measure open one construction prior decision seems us precisely point cover reimbursement claims federal jurisdiction clearly exist even reaches claims prescription sufficiently broad confer federal jurisdiction congress intends preemption instruction completely displace ordinarily applicable state law confer federal jurisdiction thereby may expected make atypical intention clear columbus garage wrecker service congress done section purport render inoperative state laws way bear federal plans cf given declares federal law preemptive instead terms negotiated contract modest reading provision order furthermore reimbursement right kind empire asserts stems recovery claim underlying recovery plainly governed state law prepared say based presentations made case contract term displace every condition state law places recovery bcbsa plan statement benefits links together carrier right reimbursement insured right subrogation empire subrogation right allows paid insured medical expenses recover directly third party responsible insured injury illness empire taken course access federal forum predicated contract right tortfeasors liability whether insured insurer governed agreement tortfeasors strangers state law sway pp also rejected alternative argument empire reimbursement claim arises federal law purposes federal law necessary element carrier claim relief making argument government relies grable sons metal products darue engineering involved real property owned grable internal revenue service irs seized satisfy federal tax deficiency grable received notice seizure certified mail irs sold property darue grable later sued darue state quiet title asserting darue record title invalid irs conveyed seizure notice improperly requires notice writing given owner left usual place abode business darue removed case federal alleging grable title depended interpretation federal statute darue invoked jurisdiction held removal proper meaning important issue sensibly belonged federal question whether grable received adequate notice issue contested case case poles apart grable reimbursement claim triggered federal agency action settlement action launched state practical issue share settlement properly payable empire grable presented nearly pure issue law resolution establish rule applicable numerous tax sale cases empire reimbursement claim contrast fact bound situation specific although correct reimbursement claim may also involve issue extent reimbursement take account attorney fees expended obtain tort recovery hardly apparent proper balance place nonstatutory issue complete governance federal law declared federal forum state suit lodged competent apply federal law extent relevant seem best positioned determine lawyer part obtaining fair share tort recovery government important interests attracting able workers assuring health welfare warrant turning discrete costly federal case insurer claim reimbursed federal worker tort litigation case squeezed slim category grable exemplifies pp affirmed ginsburg delivered opinion roberts stevens scalia thomas joined breyer filed dissenting opinion kennedy souter alito joined empire healthchoice assurance dba empire blue cross blue shield petitioner denise mcveigh administratrix estate joseph mcveigh writ certiorari appeals second circuit june justice ginsburg delivered opinion federal employees health benefits act fehba et seq ed supp iii establishes comprehensive program health insurance federal employees act authorizes office personnel management opm contract private carriers offer federal employees array plans see largest plans opm contracted annually since blue cross blue shield service benefit plan plan administered local blue cross blue shield companies case concerns proper forum reimbursement claims plan beneficiary injured accident whose medical bills paid plan administrator recovers damages unaided tort action third party alleged caused accident fehba contains preemption clause displacing state law issues relating coverage benefits afforded plans act contains provision addressing subrogation reimbursement rights carriers successive annual contracts opm blue cross blue shield association bcbsa obligated carrier make reasonable effort recoup amounts paid medical care app statement benefits distributed carrier alerts enrollees recoveries receive must used reimburse plan benefits paid see also instant case originated administrator plan beneficiary estate pursued tort litigation state parties alleged caused beneficiary injuries carrier notice action took part tort action terminated settlement carrier filed suit federal seeking reimbursement full amount paid beneficiary medical care question presented whether authorizing jurisdiction civil actions arising laws encompasses carrier action hold fehba provides jurisdiction actions congress decide provide reimbursement claims kind involved warrant exercise jurisdiction claims genre seeking recovery proceeds litigation sort ordinarily resolved state courts federal courts await clear signal congress treating auxiliary claims arising laws fehba assigns opm responsibility negotiating regulating health benefits plans federal employees see opm contracts carriers fehba instructs shall contain detailed statement benefits offered shall include maximums limitations exclusions definitions benefits opm considers necessary desirable pursuant fehba opm entered contract bcbsa establish nationwide health plan terms renegotiated annually fehba prescribes federal government pays premiums enrollee pays rest premiums thus shared deposited special treasury fund federal employees health benefits fund carriers draw fund pay covered benefits ibid see also cfr contract opm bcbsa provides enrolling accepting services contract enrollees eligible dependents obligated terms conditions provisions contract app appended brochure sets benefits carrier shall provide see carrier subrogation recovery rights see enrollee fehba directs receives statement benefits conveying information plan coverage conditions concerning reimbursement subrogation matters fehba address bcbsa plan statement benefits reads part another person entity causes suffer injury illness pay benefits injury illness must agree following recoveries obtain whether lawsuit settlement otherwise matter described designated must used reimburse us full benefits paid share recovery extends amount benefits paid pay applicable heirs administrators successors assignees seek damages illness injury must permit us initiate recovery behalf including right bring suit name called subrogation pursue recovery benefits paid must cooperate reasonably necessary assist us must take action may prejudice rights recover app participant voluntarily reimburse plan contract requires carrier make reasonable effort seek recovery amounts entitled recover cases brought attention pursuant master contract reimbursements obtained carrier must returned treasury fund see fehba contains preemption provision originally provided provisions contract chapter relate nature extent coverage benefits including payments respect benefits shall supersede preempt state local law regulation issued thereunder relates health insurance plans extent law regulation inconsistent contractual provisions assure uniform coverage benefits plans opm negotiates federal employees see preempted state laws regulations specify types medical care providers care extent benefits coverage family members age limits family members matters relating health benefits coverage noting mandated coverage services included federal plans example chiropractic services congress amended deleting words extent law regulation inconsistent contractual provisions thus reads state law whether consistent inconsistent federal plan provisions displaced matters coverage benefits fehba contains one provision addressed jurisdiction provision vests federal district courts original jurisdiction concurrent federal claims civil action claim founded chapter purpose provision evident reference federal claims carve exception statutory rule claims brought exceeding must originate federal claims see establishing district courts jurisdiction concurrent federal claims claims exceed see also pp commenting respect identical provision federal employees group life insurance act provision extend jurisdiction district courts limitation effect opm regulation suits contesting final opm action denying health benefits must brought opm carrier carrier subcontractors cfr regulation channels disputes coverage benefits federal designating agency opm sole defendant law opens federal courts carriers seeking reimbursement beneficiaries recovery tortfeasors cf provision employee retirement income security act erisa vesting federal district courts exclusive jurisdiction civil actions subchapter nothing fehba text prescribes federal rule decision carrier claim insured alleged tortfeasor share proceeds tort action ii petitioner empire healthchoice assurance business empire blue cross blue shield empire entity administers bcbsa plan applies federal employees new york state respondent denise finn mcveigh mcveigh administrator estate joseph mcveigh decedent former enrollee plan decedent injured accident plan payments medical care received death amounted mcveigh behalf decedent minor child commenced tort litigation state parties alleged caused decedent injuries learning parties litigation agreed settle tort claims empire sought recover paid decedent medical settlement provided mcveigh response empire asserted reimbursement right agreed place escrow empire filed suit district southern district new york alleging mcveigh breach reimbursement provision plan relief empire demanded offset attorney fees litigation costs mcveigh incurred pursuing settlement mcveigh moved dismiss various grounds among lack jurisdiction see answering mcveigh motion empire urged district jurisdiction federal common law governed reimbursement claim alternative empire asserted plan constituted federal law see district rejected arguments granted mcveigh motion dismiss want jurisdiction ibid divided panel appeals second circuit affirmed holding empire clai arise state law fehba text observed contains authorization carriers vindicate federal rights enrollees contracts therefore concluded federal jurisdiction exists dispute federal common law governs empire claims quoting boyle technologies appeals stated courts may create federal common law operation state law ly conflict federal interest empire maintained claim mcveigh implicated uniquely federal interest reimbursement directly affects treasury cost providing health benefits federal employees congress expressed interest maintaining uniformity among matters relating federal benefits acknowledged case involved distinctly federal interests found empire identified specific ways operation state contract law indeed laws general application conflict materially federal policies underlying fehba circumstances presented sack concurring see appeals next considered rejected empire argument fehba preemption provision independently conferred federal jurisdiction provision observed limited preemption clause instant dispute trigger unlike authoriz es federal jurisdiction claims noted makes reference federal right action federal jurisdiction reimbursement claim issue judge raggi dissented view fehba preemption provision amended calls application uniform federal common law terms fehba plan establishes federal jurisdiction empire complaint granted certiorari resolve conflict among lower federal courts concerning proper forum claims kind empire asserts compare blue cross blue shield illinois cruz upholding federal jurisdiction caudill blue cross blue shield north carolina medcenters health care ochs supp aff goepel nat postal mail handlers union rejecting federal jurisdiction decision iii title vests federal district courts original jurisdiction civil actions arising constitution laws treaties case aris es federal law within meaning said complaint establishes either federal law creates cause action plaintiff right relief necessarily depends resolution substantial question federal law franchise tax bd cal construction laborers vacation trust southern empire amicus curiae present two principal arguments support jurisdiction emphasizing opinion jackson transit authority transit union cases cited therein urge empire complaint raises federal claim seeks vindicate contractual right contemplated federal statute right congress intended federal nature see brief petitioner brief fehba preemption provision empire contend demonstrates congress intent regard argues alternatively federal jurisdiction demonstrated recent decision grable sons metal products darue engineering federal law necessary element empire claim brief accord brief petitioner address arguments turn first respond dissent view empire engaged unnecessary labor clearfield trust provides basis federal jurisdiction case post clearfield indeed pathmarking precedent thority federal courts fashion uniform federal common law issues national concern see friendly praise erie new federal common law rev dissent mistaken supposing clearfield doctrine covers case clearfield suit recover bank amount paid government check payee name forged federal rule decision federal common law determine merits controversy held rights duties commercial paper issues governed federal rather state law decisions benefit enlightened commentary see friendly supra made clear uniform federal law need applied questions federal government litigation even cases involving government contracts fallon meltzer shapiro hart wechsler federal courts federal system ed hereinafter hart wechsler prudent course recognized often adopt readymade body state law federal rule decision congress strikes different accommodation kimbell foods later boyle telescoped appropriate inquiry focusing straightforward question whether relevant federal interest warrants displacement state law see referring simply displacement state law recognized prior cases treated discretely competence federal courts formulate federal rule decision appropriateness declaring federal rule rather borrowing incorporating adopting state law point preferred modest terminology questioning whether distinction displacement state law displacement federal law incorporation state law ever makes practical difference ibid boyle made two observations significant first boyle explained involvement area uniquely federal interest establishes necessary sufficient condition displacement state law second cases entire body state law may conflict federal interest therefore require replacement others conflict confined particular elements state law superseded ibid dissent describes case pervasively federal post provisions scattered islands sea federal contractual provisions post nothing scattered provisions reimbursement subrogation master contract see supra provisions linked together depend upon recovery third party terms conditions ordinarily governed state law see infra appeals whose decision review trained matter reimbursement dissent contracts large focused appeals determined empire demonstrated significant conflict identifiable federal policy interest operation state law sack concurring quoting boyle see unless showing made cause displace state law much less lodge case federal take next empire jackson argument essentially tailored variation theme sounded dissent undisputed congress expressly created federal right action enabling insurance carriers like empire sue beneficiaries federal enforce reimbursement rights contracts contemplated fehba empire nevertheless argue opinion jackson transit empire claim reimbursement arising contract opm bcbsa federal claim congress intended rights duties stemming contract federal nature brief amicus curiae see brief petitioner persuaded argument reliance placed empire jackson transit surprising decision held federal jurisdiction claim suit federal statute involved urban mass transportation act umta stat codified ed conditioned governmental unit receipt federal funds acquire privately owned transit company preservation rights enjoyed acquired company employees city jackson tennessee federal financial assistance acquired failing private bus company turned public entity jackson transit authority satisfy condition federal aid transit authority entered agreement union represented private company employees secretary labor certified agreement fair equitable ibid internal quotation marks omitted several years thereafter transit authority covered unionized workers series agreements eventually however authority notified union longer adhere undertakings union commenced suit federal alleging breach agreement latest agreement ibid determined case arise federal law instead governed state law applied state cour acknowledged jackson transit several occasions determined plaintiff stated federal claim sued vindicate contractual rights set forth federal statutes even though relevant statutes lacked express provisions creating federal causes action emphasis added citing machinists central airlines union federal right action enforce award included contract pursuant provision railway labor act norfolk western nemitz railroad employees stated federal claims sought enforce assurances made railroad secure interstate commerce commission approval consolidation provision interstate commerce act transamerica mortgage advisors lewis permitting federal suit rescission contract declared void provision investment advisers act prior decisions said id dictate result jackson transit case case critical factor determining scope rights remedies federal statute congressional intent behind particular provision issue ways jackson transit said umta seem ed make agreements contracts creatures federal law regard noted demand ed equitable arrangements prerequisites federal aid require approval secretary labor arrangements specifie five different varieties protective provisions must included among arrangements expressly incorporate protective arrangements grant contract recipient federal government ibid quoting countervailing considerations observed labor relations local governments employees subject longstanding statutory exemption national labor relations act section continued evince congressional intent upset decision nlra permit state law govern relationships local governmental entities unions representing employees legislative history corroborative consistent theme found ran throughout consideration congress intended labor relations transit workers local governments controlled state law therefore held union come wrong forum congress indeed provided agreements contracts stemming judgment union proper recourse enforcement contracts suit state measured discussion jackson transit claim arises federal law empire claim reimbursement creatur federal law true distinctly federal interests involved principally reimbursements credited federal fund master contract described federal nature negotiated federal agency concerns federal employees see supra jackson transit countervailing considerations control among reimbursement right question predicated contract prescription federal law see supra prime importance congress considered jurisdictional issues enacting fehba confer ring federal jurisdiction found necessary fehba jurisdictional provision opens federal door civil actions see supra opm regulation cfr instructs enrollees seek challenge benefit denials proceed opm carrier carrier subcontractors see supra read together prescriptions ensur suits brought beneficiaries denial benefits land federal congress found necessary proper extend federal jurisdiction particular encompass reimbursement claims carriers insured workers easy enough congress say cf authorizing suit federal participant beneficiary fiduciary pension health plan governed erisa gain redress violations subchapter terms plan warrant expand congress jurisdictional grant judicial decree see kokkonen guardian life ins america jackson transit empire points referred decisions demonstrat ing private parties appropriate cases may sue federal enforce contractual rights created federal statutes see brief petitioner case however involves right created federal statute reiterated master contract provides reimbursement fehba text contains provision addressing reimbursement subrogation rights carriers read fehba preemption prescription see supra provision prescription unusual renders preemptive contract terms health insurance plans provisions enacted congress see sack concurring prescription unusual order warrants cautious interpretation section puzzling measure open one construction prior decision seems us precisely point reading reimbursement clause master contract condition limitation benefits received federal employee clause ranked among contract terms relat ing coverage benefits payments respect benefits thus falling within compass see brief amicus curiae reply brief hand claim reimbursement ordinarily arises long coverage benefits questions resolved corresponding payments respect benefits made care providers insured consideration view words may read refer contract terms relating beneficiary entitlement lack thereof plan payment certain services received terms relating carrier right reimbursement see brief julia cruz amicus curiae decide case need choose plausible constructions reimbursement claims covered fehba preemption provision federal jurisdiction clearly exist even fehba preemption provision reaches reimbursement claims provision sufficiently broad confer federal jurisdiction congress intends preemption instruction completely displace ordinarily applicable state law confer federal jurisdiction thereby may expected make atypical intention clear cf columbus garage wrecker service citing wisconsin public intervenor mortier congress done section text purport render inoperative state laws way bear federal plans cf portions erisa supersede state laws insofar may hereafter relate employee benefit plan observed see supra given declares federal law preemptive instead terms negotiated contract modest reading provision order furthermore reimbursement right kind empire asserts stems recovery claim underlying recovery plainly governed state law prepared say based presentations made case contract term displace every condition state law places recovery earlier observed bcbsa plan statement benefits links together carrier right reimbursement insured right subrogation see supra empire subrogation right allows carrier paid insured medical expenses recover directly third party responsible insured injury illness see couch cyclopedia insurance law ed empire taken course access federal forum predicated contract right tortfeasors liability whether insured insurer governed agreement tortfeasors strangers state law sway sum presentations us fail establish leaves room state law potentially bearing federal plans general claims particular accordingly extract prescription jurisdiction turn finally argument empire reimbursement claim even qualify cause action created federal law nevertheless arises federal law purposes federal law necessary element carrier claim relief brief amicus curiae quoting grable case satisfied fit within special small category place first describe grable recent decision identifies explain case resemble one grable involved real property belonging grable sons metal products grable internal revenue service irs seized satisfy federal tax deficiency grable received notice seizure certified mail irs sold property darue engineering manufacturing darue ibid five years later grable sued darue state quiet title grable asserted darue record title invalid irs conveyed seizure notice improperly governing statute provides notice writing shall given owner property shall left usual place abode business grable maintained required personal service service certified mail darue removed case federal alleging grable claim title depended interpretation federal statutory provision internal revenue code darue invoked jurisdiction affirmed lower determinations removal proper meaning federal tax provision said important issue federal law sensibly belongs federal whether grable received notice adequate observed essential element grable quiet title claim indeed appear ed issue contested case ibid case poles apart grable cf brief amicus curiae dispute centered action federal agency irs compatibility federal statute question qualified substantial resolution dispositive case controlling numerous cases see reimbursement claim triggered action federal department agency service settlement action launched state see supra practical issue share settlement properly payable empire grable presented nearly pure issue law one settled thereafter govern numerous tax sale cases hart wechsler contrast empire reimbursement claim mcveigh counsel represented without contradiction mcveigh contends overcharges duplicative charges care providers seeks determine whether particular services properly attributed injuries caused accident rendered reason unrelated accident see tr oral arg observes claim reimbursement may also involve issue extent reimbursement take account attorney fees expended obtain tort recovery brief amicus curiae indeed may hardly apparent proper balance see place nonstatutory issue complete governance federal law declared federal forum state suit lodged competent apply federal law extent relevant seem best positioned determine lawyer part obtaining fair share tort recovery doubt overwhelming interest attracting able workers federal workforce health welfare federal workers upon relies carry functions interests persuaded warrant turning discrete costly federal case insurer claim reimbursed proceeds federal worker tort litigation sum grable emphasized takes federal element open door case squeezed slim category grable exemplifies reasons stated judgment appeals second circuit affirmed empire healthchoice assurance dba empire blue cross blue shield petitioner denise mcveigh administratrix estate joseph mcveigh writ certiorari appeals second circuit june justice breyer justice kennedy justice souter justice alito join dissenting case involves dispute meaning terms federal health insurance contract contract federal agency private carrier sets forth details federal health insurance program created federal statute covering million federal employees find basis federal jurisdiction believe see clearfield trust little case federal comprehensive federal health insurance program issue created federal statute federal employees health benefits act fehba et seq ed supp iii program provides insurance federal government employees families insurance program today covers approximately million federal employees retirees dependents total cost government billion year brief amicus curiae implement statute office personal management opm relevant federal agency enters contracts handful major insurance carriers contracts follow standard agency form words contain details plan offered carrier see ed requiring contract carrier agency contain detailed statement terms plan see also federal employees health benefits program standard contract available http sample form contract internet materials visited june available clerk case file contract lists example benefits provided employees enroll provides patient bill rights makes clear government carrier receive premiums pay benefits specifies carrier administer program contract sets forth carrier receive adjustable fee contract also enrolling accepting services contract enrollees obligated terms conditions provisions contract app statute requires contract also provides carrier send enrolled employee brochure explains terms plan set forth contract brochure explains describes benefits lan carrier contract federal agency authorized federal statute terms brochure incorporated contract carrier distributes brochure seal attached front stating authorized distribution office personnel management retirement insurance service program largely funded federal government specifically federal government pays plan premiums enrollee pays rest premiums deposited special fund treasury carrier typically withdraws money fund pay covered health care services ibid however fund money belongs carrier federal agency administers program benefits paid surplus fund used agency discretion reduce premiums increase plan benefits make refund government enrollees cfr carrier risk rather earns profit difference plan premiums cost benefits negotiated service charge federal agency pays directly federal regulations provide federal agency resolve disputes enrolled employee coverage see also requiring carrier provide health benefit opm concludes enrollee entitled benefit contract agency resolution judicially reviewable administrative procedure act federal cfr sum statute federal program creates federal program beneficiaries federal employees working throughout country federal government pays relevant costs federal government receives relevant payments private carrier role scheme administer health benefits plan federal agency exchange fixed service charge plan issue blue cross blue shield service benefit plan largest statutory program plan details contained blue cross blue shield contract federal agency brochure binds enrolled employee contract case carrier seeks require enrolled employee estate abide provisions permit carrier obtain require enrolled employee pay reimbursement enrollee benefits provided enrollee recovers money third party compensation relevant injury illness parties dispute proper application provisions first agency contract carrier requires carrier mak reasonable effort seek recovery amounts entitled recover app carrier must single policy ensure equitable consistent treatment enrollees contract ibid money recovered carrier goes statutory fund treasury may spent benefit program discretion federal agency see supra second contract brochure set forth enrollee obligation reimburse carrier certain circumstances contract carrier may recover directly enrollee amounts received enrollee suit settlement otherwise third party insurer benefits also paid contract app contract also says arrier subrogation rights procedures policies including recovery rights shall accordance provisions brochure text relevant provisions brochure also appear appendix contract tell enrollee another person entity act omission causes suffer injury illness pay benefits injury illness must agree following recoveries obtain whether lawsuit settlement otherwise matter described designated must used reimburse us full benefits paid reduce share recovery unless agree writing reduction pay attorneys fees enrollee must abide requirements explained brochure tells beneficiary enrolling program agreeing terms brochure turn describes benefits plan contract ii explained nature program set forth terms contract detail understood federal nature brings case well within scope relevant federal jurisdictional statute provides jurisdiction claims arising federal law purposes statute claim arises federal law federal law creates cause action merrell dow pharmaceuticals thompson see also american well works layne bowler opinion holmes suit arises law creates cause action explained statutory grant support claims founded upon federal common law well statutory origin national farmers union ins crow tribe see also illinois milwaukee wright miller cooper federal practice procedure ed case federal common law presents federal question within original jurisdiction federal courts words ederal common law articulated rules fashioned decisions term used national farmers supra seems clear petitioner claim arises federal common law dispute concerns application terms federal contract consistently held obligations rights contracts governed exclusively federal law boyle technologies principle dates back least far clearfield trust held rights duties federal commercial paper namely federal employee paycheck governed federal rather local law reasoned hen disburses funds pays debts exercising constitutional function power power way dependent laws pennsylvania state ibid accordingly absence applicable act congress federal courts fashion governing rule law applied principle principle embodied clearfield trust government contracts sorts see west virginia contract regarding federal disaster relief efforts kimbell foods contractual liens arising federal loan programs little lake misere land agreements acquire land federal conservation program seckinger government construction contracts county allegheny government procurement contracts case words provide right recover contained brochure turn explains provisions contract government carrier provisions written federal agency acting pursuant federal statute creates federal benefit program federal employees bottom petitioner claim based interpretation federal contract governed federal common law petitioner claim based federal common law federal courts jurisdiction pursuant lower federal courts similarly found jurisdiction suits private parties based federal government contracts see downey state farm fire casualty easterbrook national flood insurance program contracts almond capital properties boudin federal railroad administration contract price pierce posner dept housing urban development contracts might one say contrary first may made absolute statement claiming disputes arising federal common law jurisdictional purposes cases arising federal law every case cited except national farmers milwaukee including appeals cases party fact provides independent basis jurisdiction see cases decision apply federal common law therefore issue ante consequently need address application clearfield trust doctrine arising jurisdiction found case federal concluded federal common law governed plaintiff contract claim nevertheless decided claim arise federal law found several lower cases cited supra courts asserted jurisdiction solely basis federal common law machinists central airlines cited clearfield trust cases finding jurisdiction contract suit noting although cases involve federal jurisdiction nevertheless suggestive issue jurisdiction suits involving federal government contracts since hold federal law determinative merits claim enough however assume federal common law means federal jurisdiction congress intends cf clearfield trust supra absence applicable act congress federal courts fashion governing rule law according standards emphasis added strong reasons federal courts following clearfield trust assume jurisdiction apply federal common law resolve case first although nominal plaintiff case carrier real party interest funds petitioner recovers must pay directly depositing funds fehba treasury account managed federal agency carrier simply administers reimbursement proceeding administers rest contract accordingly case like clearfield trust cases concerns rights contracts boyle second health insurance system fehba establishes federal program federal government pays benefits receives premiums resolves disputes claims medical services given role federal government need uniform interpretation contract great given spread government employees throughout nation unfairness treating similar employees differently employees need uniform interpretation equally great interest uniformity calls application federal common law disputes meaning words contract brochure see clearfield trust itigation respect government paper private parties may nevertheless governed federal common law presence federal interest interest uniformity also suggests doors federal courts open decide disputes third discussed provisions issue scattered islands sea federal contractual provisions federal courts interpret apply reviewing federal agency resolution disputes regarding benefits given context congress wanted courts treat islands differently find convincing answer regardless majority appeals believe come one possible indication contrary congressional intent believe statute jurisdictional provision argues federal jurisdiction formally party provision gives federal district courts original jurisdiction concurrent federal claims civil action claim founded chapter according majority congress wanted cases like one brought federal courts extended cover ante congress failure write include suits carriers enrollees plan provisions may reflect inadvertence may reflect belief covered cases regardless either way tells us nothing congress intent respect jurisdiction congress write cases covered contract claims federal government founded federal health insurance program also governed federal common law view correct fallen within scope need view correct write special section expanding federal jurisdiction encompass claims answer majority points ante congress write expand jurisdiction federal courts wrote section transfer category suits claims exceeding one federal federal claims others federal district courts sum given clearfield trust supra progeny every reason believe federal common law governs disputes concerning contract even though easy enough congress say federal common law govern claims see ante express statement congressional intent present clearfield trust cases relying clearfield trust authority apply federal common law interpret government contracts see cases cited supra see also clearfield trust supra absence applicable act congress federal courts fashion governing rule law according standards accordingly apply federal common law resolve petitioner contract claim explained governing rule law claim based federal common law federal courts jurisdiction claim adds spite pervasively federal character dispute state law govern petitioner demonstrated conflict identifiable federal policy interest operation state law ante explained see supra federal government two interests uniform operation federal employee health insurance program obtaining reimbursement uniform set legal rules interests undermined amount federal employee reimburse fehba treasury fund cases like one varies state state accordance state contract law past recognized sort interest uniformity sufficient warrant application federal common law see boyle federal interest requires uniform rule entire body state law applicable area conflicts replaced federal rules kimbell foods undoubtedly federal programs nature must uniform character throughout nation necessitate formulation controlling federal rules clearfield trust supra applying federal common law application state law subject rights duties exceptional uncertainty lead great diversity results making identical transactions subject vagaries laws several therefore desirability uniform rule plain even correct prudent adopt readymade body state law federal rule decision congress strikes different accommodation ante quoting kimbell foods supra still federal jurisdiction case clearfield trust kimbell foods cases make clear decision apply state law federal rule decision matter federal common law see kimbell foods supra state law incorporated matter federal common law involves problem relationship particular issue going federal emphasis added clearfield trust supra choice applicable federal rule occasionally selected state law emphasis added see also fallon meltzer shapiro hart wechsler federal courts federal system ed current approach reflected kimbell foods supra suggests clearfield federal common law governs general incorporate state law rule decision wright miller cooper federal practice procedure recent years put increasing emphasis notion determining content federal common law law forum state adopted absent good reason displace emphasis added citing kimbell foods supra clearfield trust supra view clearfield trust inquiry involves two questions whether federal common law governs plaintiff claim whether matter federal common law adopt state law proper rule decision ante emphasis added see kimbell foods supra deciding ederal law therefore controls dispute concluding state law gives content federal rule little lake misere land first step clearfield analysis decide whether courts may formulate rule decision next step analysis determine whether federal rule decision state law see also friendly praise erie new federal common law rev clearfield decided one issue two first right recover conversion government check federal right courts may formulate rule decision second whether opportunity federal courts adopt uniform rule follow state law omitted therefore even correct state law applies claims involving interpretation provisions contract decision whether apply state law made federal courts federal common law accordingly jurisdictional purposes claims must still arise federal law federal common law determines rule decision finally boyle cited purport overrule clearfield trust point see boyle supra distinction displacement state law displacement federal law incorporation state law ever makes practical difference least present case respect dissent footnotes statement benefits provides must tell us promptly claim another party condition paid may pay benefits must tell us recoveries obtain whether may seek lien proceeds claim order reimburse full amount benefits paid pay may request assign us right bring action right proceeds claim illness injury may delay processing claims provide assignment note pay costs covered services receive excess recoveries made app oral argument counsel respondent mcveigh represented reimbursement claims th magnitude ost cases involve amounts like tr oral arg accord dissent regard see post several times cites county allegheny see brief amicus curiae maintaining construction federal contract necessarily present questions law controlled law state quoting allegheny stretch widely suggests case concerned whether certain property belonged whether incidence state tax government contractor see neither agency party case auxiliary matter involved scarcely resembles controversy allegheny dissent nowhere suggests uniform federal law govern carrier subrogation claim tortfeasor dissent explain two linked provisions reimbursement subrogation decoupled grable observed