Davis v. Shah

821 F.3d 231, 2016 WL 1138768
Court of Appeals for the Second Circuit·Decided March 24, 2016·No. Docket No. 14-543-cv·Published·Cited by 109 cases

Opinion

GERARD E. LYNCH, Circuit Judge:

Plaintiffs-appellees. Harry Davis, Rita-Marie Geary, Patty Poole, and Roberta Wallach (“plaintiffs”) brought this class, action against defendant-appellant Nirav Shah, Commissioner of the New York State Department of Health (the “Commissioner”), challenging New York’s coverage restrictions on certain medical services provided under its Medicaid plan. .Plaintiffs argue that New York’s 2011 plan amendments, which restrict coverage of orthopedic footwear and • compression stockings to patients with certain enumerated medical conditions, violate the Medicaid Act’s reasonable, standards,, home health services, due process, and comparability provisions,- as well as., the anti-discrimination provision and integration mandate of Title II of -the Americans with Disabilities Act (“ADA”) and § 504 of the Rehabilitation Act. The United States District Court for the-Western District of New York (Charles J. Siragusa, Judge) granted summary judgment to defendant on plaintiffs’ home, health- services claim and the hearing aspect of their due process claim, and granted summary judgment to plaintiffs on all their remaining claims. The court subsequently entered a permanent injunction barring New York from enforcing its coverage restrictions against any beneficiaries under its plan.

We affirm in part and vacate in part. Because neither the Medicaid Act nor the Supremacy Clause confers a private cause of action to enforce the reasonable standards provision, we vacate the district court’s grant of summary judgment to plaintiffs on that claim. We , also decline to reach plaintiffs’ unequal treatment claim under the ADA and Rehabilitation Act as largely duplicative of their integration mandate claim. With respect to the remaining claims, however, we affirm the summary judgment rulings of the district court. Because orthopedic, footwear [238] and compression stockings constitute optional “prosthetics” rather than mandatory “home health services” under the Medicaid Act, defendant is entitled to summary judgment on plaintiffs’ home health services claim.' Because the due process provision required New York to provide plaintiffs with written notice — though not evidentiary' hearings — prior to terminating their . benefits, ■ defendant is entitled to summary judgment on the hearing element and plaintiffs are entitled to summary judgment on the notice element of plaintiffs’ due process claim. Because New York’s coverage restrictions deny some categorically needy individuals access to the same scope of medically necessary services made available to others, plaintiffs- are entitled to summary judgment on their comparability provision claim. Because New York’s restrictions violate the integration mandate of the ADA and Rehabilitation Act, plaintiffs are entitled to summary judgment' on their antidiscrimination claims .under those statutes. '

Finally, because the injunction granted by the district court is broader than is' warranted by our liability conclusions, we vacate that injunction and remand for further consideration of the appropriate relief.

BACKGROUND

I. The Federal Medicaid Program

Enacted in 1965 as Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., the Medicaid Act is a cooperative federal-state program designed tó provide medical assistance to persons whose resources are insufficient to meet the cost's of their necessary medical care. Himes v. Shalala, 999 F.2d 684, 686 (2d Cir.1993). On the federal level, the program is administered by the Centers for Medicare and Medicaid Services (“CMS”), a division of the United States Department of Health and Human Services (“HHS”). Although no state is required to participate in Medicaid, states that choose to do so must formulate a plan of administration that complies with both the Medicaid Act and regulations promulgated by HHS. 42 U.S.C. § 1396a; Lewis v. Thompson, 252 F.3d 567, 569 (2d Cir.2001). Once CMS approves the state plan as complying with all statutory and regulatory requirements, the federal government will subsidize a significant portion of the state’s expenditures in administering the program. 42 U.S.C. §§ 1396a(b), 1396b; Rodriguez v. City of New York, 197 F.3d 611, 613 (2d Cir.1999).

A state’s Medicaid plan defines both the categories of individuals eligible for benefits arid the categories ,of services that are covered for those different groups. See 42 U.S.C.. § 1396a(a); Pharm. Research & Mfrs. of Am. v. Walsh, 538 U.S. 644, 650, 123 S.Ct. 1855, 155 L.Ed.2d 889 (2003). With regard to beneficiaries, the Medicaid Act requires any state participating in Medicaid to provide medical assistance to the “categorically needy.” Roach v. Morse, 440 F.3d 53, 59 (2d Cir.2006). That group includes aged, blind, or disabled individuals who qualify for supplemental security income; individuals eligible for the Aid to Families with Dependent Children program; and other low-iricome groups, such as pregnant women and children, entitled to poyerty-related benefits. See 42 U.S.C. § 1396a(a)(10)(A)(i); Walsh, 538 U.S. at 651 n. 4, 123 S.Ct. 1855. A state may. also, at its option, provide medical assistance to the “medically needy.” Roach, 440 F.3d at 59. That group includes individuals whose income or resources exceed the financial threshold for categorical coverage, but who otherwise meet the eligibility requirements that define the categorically needy. See 42 [239] U.S.C. § 1396a(a)(10)(C); 42 C.F.R. § 435.301; Walsh, 538 U.S. at 651 n. 5, 123 S.Ct. 1855. Unlike the categorically needy, who can cover the costs of neither their basic needs nor necessary medical care, the “medically needy” have sufficient resources to cover their basic needs but not their necessary medical care. Roach, 440 F.3d at 59.

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Davis v. Shah, 821 F.3d 231, 2016 WL 1138768 (2d Cir. 2016).

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