Iliana Garrido v. Interim Secretary, Florida Agency for Health Care Administration

731 F.3d 1152, 2013 WL 5291117, 2013 U.S. App. LEXIS 19409
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 20, 2013
Docket12-13785
StatusPublished
Cited by23 cases

This text of 731 F.3d 1152 (Iliana Garrido v. Interim Secretary, Florida Agency for Health Care Administration) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iliana Garrido v. Interim Secretary, Florida Agency for Health Care Administration, 731 F.3d 1152, 2013 WL 5291117, 2013 U.S. App. LEXIS 19409 (11th Cir. 2013).

Opinion

HULL, Circuit Judge:

Plaintiffs-Appellees K.G., I.D., and C.C., through their next friends, sued Defendant-Appellant Elizabeth Dudek, in her official capacity as Interim Secretary for the Florida Agency for Health Care Administration. Plaintiffs alleged that Du-dek violated the Medicaid Act by denying Medicaid coverage of applied behavioral analysis to treat Plaintiffs’ autism spectrum disorders. After a four-day bench trial, the district court granted Plaintiffs a permanent injunction, concluding that Medicaid covered this treatment for the Plaintiffs. KG. ex rel. Garrido v. Dudek, 864 F.Supp.2d 1314 (S.D.Fla.2012). The district court subsequently granted Plaintiffs a declaratory judgment. K.G. ex rel. Garrido v. Dudek, 1:11-cv-20684-JAL (D.E.144) (S.D.Fla. June 14, 2012). This appeal concerns the scope of the permanent injunction and declaratory judgment. After review and with the benefit of oral argument, we affirm in part, but reverse and remand to the district court for modification of the permanent injunction and declaratory judgment.

I. BACKGROUND

To understand the issues in this appeal, we briefly outline the Medicaid program and its coverage of certain medically necessary services.

A. Regulatory Framework

Medicaid is a cooperatively funded federal-state program designed to help states provide medical treatment to their needy citizens. States devise and fund *1154 their own medical assistance programs, subject to the requirements of the federal Medicaid Act, and the federal government provides partial reimbursement. See 42 U.S.C. §§ 1396b(a), 1396d(b). A state’s participation in the Medicaid program is voluntary, but once a state chooses to participate it must comply -with federal statutory and regulatory requirements. See Alexander v. Choate, 469 U.S. 287, 289 n. 1, 105 S.Ct. 712, 714 n. 1, 83 L.Ed.2d 661 (1985). All states, including Florida, participate in the Medicaid program. Florida administers its Medicaid program through the Agency for Health Care Administration (“AHCA”). See Fla. Stat. §§ 409.901(2), 409.902.

Under the Medicaid Act, participating states must provide “early and periodic screening, diagnostic, and treatment services” (“EPSDT”) for Medicaid-eligible minors under the age of 21. 42 U.S.C. § 1396d(a)(4)(B). The EPSDT program mandates four specific categories of services: screening, vision, dental, and hearing services. 42 U.S.C. § 1396d(r)(l)-(4). Additionally, the catch-all EPSDT provision in § 1396d(r)(5) — the most relevant to this appeal — mandates that participating states provide to Medicaid-eligible minors “[s]uch other necessary health care, diagnostic services, treatment, and other measures described in [§ 1396d(a) ] to correct or ameliorate defects and physical and mental illnesses and conditions discovered by the screening services, whether or not such services are covered under the State plan.” Id. § 1396d(r)(5).

In turn, § 1396d(a) lists 29 covered categories of care and services, including preventive and rehabilitative services. Id. § 1396d(a)(13). Thus, under § 1396d(r)(5), a state must provide a service listed in § 1396d(a) to a Medicaid-eligible minor— even if the state does not provide that service to Medicaid-eligible adults — if the service is necessary to “correct or ameliorate” a condition or defect discovered during an EPSDT screen.

Another relevant component of the federal Medicaid Act is its comparability requirement provision, which ensures equitable treatment of beneficiaries. Under this provision, “the medical assistance made available to any [eligible] individual ... shall not be less in amount, duration, or scope than the medical assistance made available to any other such individual.” 42 U.S.C. § 1396a(a)(10)(B)(i); see also id. § 1396a(a)(10)(B)(ii).

However, federal regulations provide that each service covered by Medicaid “must be sufficient in amount, duration, and scope to reasonably achieve its purpose” and the state Medicaid agency “may place appropriate limits on a service based on ... medical necessity.” 42 C.F.R. § 440.230. Although neither the Medicaid Act nor its implementing regulations explicitly define the standard of “medical necessity,” “it has become a judicially accepted component of the federal legislative scheme.” Moore ex rel. Moore v. Reese, 637 F.3d 1220, 1232 (11th Cir.2011). The Medicaid Act and its implementing regulations grant the authority to the states to set reasonable standards for the terms “necessary” and “medical necessity.” See 42 U.S.C. § 1396a(a)(17); 42 C.F.R. § 440.230(d); see also Moore, 637 F.3d at 1255. Thus, as permitted by the federal Medicaid Act, Florida statute authorizes Medicaid coverage for only those services that are “medically necessary.” Fla. Stat. §§ 409.905, 409.906. Under Florida’s regulatory scheme, “medically necessary” or “medical necessity” means that

the medical or allied care, goods, or services furnished or ordered must ... [m]eet the following conditions:
*1155 1. Be necessary to protect life, to prevent significant illness or significant disability, or to alleviate severe pain;
2. Be individualized, specific, and consistent with symptoms or confirmed diagnosis of the illness or injury under treatment, and not in excess of the patient’s needs;
3. Be consistent with generally accepted professional medical standards as determined by the Medicaid program, and not experimental or investigational;
4. Be reflective of the level of service that can be safely furnished, and for which no equally effective and more conservative or less costly treatment is available statewide; and
5. Be furnished in a manner not primarily intended for the convenience of the recipient, the recipient’s caretaker, or the provider.

Fla. Admin. Code r. 59G-1.010(166)(a).

Accordingly, for a treatment to be “medically necessary” and covered by Florida Medicaid, the treatment must be, inter alia,

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731 F.3d 1152, 2013 WL 5291117, 2013 U.S. App. LEXIS 19409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iliana-garrido-v-interim-secretary-florida-agency-for-health-care-ca11-2013.