In the 1983 case of Heckler, Secretary of Health and Human Services v. Edwards, the U.S. Supreme Court dealt with issues related to Medicare benefits. The dispute arose when a group of patients who had been denied Medicare Part A benefits for post-hospital extended care services challenged the denial in court after exhausting their administrative remedies within the Department of Health and Human Services (HHS). They argued that HHS was applying an incorrect standard in determining eligibility for these benefits. The Supreme Court ruled against HHS, holding that it had indeed applied an improper standard by requiring patients to show improvement as a condition for receiving extended care services under Medicare Part A. The Court clarified that according to law, such services are not limited only to those whose conditions can improve but also include those who need skilled nursing care simply to maintain their current health status or prevent further deterioration. This decision underscored that federal agencies must adhere strictly to statutory requirements when implementing programs like Medicare and cannot impose additional criteria beyond what Congress has specified.

In the dissenting opinion for Heckler v. Edwards, Justice Brennan argued that the Secretary of Health and Human Services' decision to deny disability benefits was not supported by substantial evidence. He emphasized that Congress intended for Social Security disability benefits to be awarded liberally and criticized the majority's interpretation of "substantial gainful activity" as overly narrow. Furthermore, he contended that a claimant should not have to prove they are unable to perform any work in order to qualify for benefits; instead, it should suffice if they can demonstrate an inability to engage in their previous employment or other significant types of work due primarily because of their medical condition. The justice also expressed concern about how this ruling might affect future cases involving disabled individuals seeking assistance under social security laws.