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 The House Ways and Means Committee argued in a court filing that
U.S. District Judge Paul Gardephe in New York should deny the
Securities and Exchange Commission's attempt to subpoena documents
from the committee and its healthcare subcommittee staff director
Brian Sutter.
The SEC went to court June 20 to enforce subpoenas it issued as it
sought information related to a probe into whether Sutter leaked
material nonpublic information about Medicare reimbursement rates to
Mark Hayes, a lobbyist at Greenberg Traurig LLP.
The committee's filing called the SEC subpoena "a remarkable fishing
expedition for congressional records." It said the U.S. Constitution
shields the panel and Sutter from being compelled to testify or
produce documents.
A request for comment from the SEC was not immediately returned.
 The dispute between the House committee and the regulator could test
the boundary of the SEC's powers to compel the legislative branch of
government to cooperate with its enforcement of the federal
securities laws.
In previous court filings, the SEC said Hayes spoke with Sutter the
same day that the Centers for Medicare and Medicaid Services
announced reimbursement rates for the Medicare Advantage program.
The regulator said Hayes then emailed the brokerage firm Height
Securities, which shortly afterward sent its clients a "flash alert"
suggesting the deal could help insurance companies such as Humana
Inc <HUM.N> and Health Net Inc <HNT.N>.
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Share prices of both companies jumped after the report was issued.
The SEC will have until July 11 to respond to the committee's
opposing arguments.
The case is SEC v. Committee on Ways and Means of the U.S. House of
Representatives et al, U.S. District Court, Southern District of New
York, No. 14-mc-00193.
(Reporting by Luciana Lopez in New York and Nate Raymond and Sarah
Lynch in Washington; Editing by David Gregorio)
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