Lancaster v. Cartmell

CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 23, 2025
Docket25-6000
StatusPublished

This text of Lancaster v. Cartmell (Lancaster v. Cartmell) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lancaster v. Cartmell, (10th Cir. 2025).

Opinion

Appellate Case: 25-6000 Document: 49 Date Filed: 12/23/2025 Page: 1 FILED United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS December 23, 2025 Christopher M. Wolpert FOR THE TENTH CIRCUIT Clerk of Court _________________________________

MAX LANCASTER, by and through Jan Green, next of friend and attorney-in-fact; PEGGY LANCASTER, by and through Jan Green, next of friend and attorney-in- fact,

Plaintiffs - Appellants,

v. No. 25-6000

JEFFREY CARTMELL, Director of Oklahoma Department of Human Services, in his official capacity; ELLEN BUETTNER, CEO/Director of Oklahoma Health Care Authority, in her official capacity,

Defendants - Appellees. _________________________________

Appeal from the United States District Court for the Western District of Oklahoma (D.C. No. 5:24-CV-00842-J) _________________________________

Michael Craig Riffel (Katresa J. Riffel, Jonathan F. Benham, and Matthew C. Russell, Riffel, Riffel & Benham, P.L.L.C., Enid, Oklahoma, with him on the briefs) for Plaintiffs-Appellants.

Ryan Gillett (Michael Williams, Oklahoma City, Oklahoma, with him on the brief) for Defendant-Appellee Ellen Buettner.

Susan L. Eads, Assistant General Counsel (Josh Holloway, Assistant General Counsel, Oklahoma City, Oklahoma, with her on the brief) for Defendant-Appellee Jeffrey Cartmell. _________________________________ Appellate Case: 25-6000 Document: 49 Date Filed: 12/23/2025 Page: 2

Before TYMKOVICH, PHILLIPS, and McHUGH, Circuit Judges. _________________________________

TYMKOVICH, Circuit Judge. _________________________________

Max and Peggy Lancaster applied for Medicaid benefits. After their

applications were denied, the Lancasters sued the directors of the Oklahoma

Department of Human Services and Oklahoma Health Care Authority (the Agencies)

under 42 U.S.C. § 1983, asserting that the Agencies violated the Medicaid Act—

specifically 42 U.S.C. § 1396a(a)(8)—by unlawfully denying the Lancasters’

Medicaid applications. The Agencies jointly moved to dismiss the lawsuit. The

district court granted the motion, finding that the Lancasters were not eligible for

Medicaid benefits because their financial resources exceeded the asset limitation for

Medicaid eligibility. The Lancasters appealed.

During the course of the appeal, the Supreme Court decided Medina v.

Planned Parenthood South Atlantic, 606 U.S. 357 (2025). The Agencies argue that

under Medina, § 1396a(a)(8) does not confer an individual right enforceable though

§ 1983.

We agree and thus AFFIRM. The Supreme Court in Medina explained that a

statute confers a personally enforceable right only if the law “clearly and

unambiguously uses rights-creating terms” with an “unmistakable focus on

individuals like the plaintiff.” Medina, 606 U.S. at 368 (citations modified). It then

found that § 1396a(a)(23)(A)—a provision materially similar to § 1396a(a)(8)—did

2 Appellate Case: 25-6000 Document: 49 Date Filed: 12/23/2025 Page: 3

not satisfy that standard and rejected plaintiffs’ private right of action. Medina

applies with equal force to the Lancasters’ claims here.

I. Background

The Lancasters 1 transferred approximately $3.8 million worth of their real and

personal property to The Lancaster Family LLC, a limited liability company owned

by their three adult children. In return, the Family LLC executed a loan agreement,

real estate mortgages, personal guarantees, and a promissory note. The Lancasters

then applied for Medicaid benefits but were found ineligible.

The Lancasters sued the Agencies in federal court under 42 U.S.C. § 1983,

claiming a violation of 42 U.S.C. § 1396a(a)(8). According to the complaint, the

Agencies erred in finding the Lancasters ineligible based on their asset

determination; the Lancasters argue this determination violated § 1396a(a)(8), which

requires the Agencies to promptly provide Medicaid benefits to eligible individuals.

The Agencies moved to dismiss and argued, in part, that the Family LLC’s

promissory note to the Lancasters was not bona fide—that is, the loan was not

“legally valid under the applicable State’s law and made in good faith.” See POMS

SI § 1120.220(B)(3). The promissory note was therefore a countable resource for

purposes of determining the Lancasters’ Medicaid eligibility. And because the

Lancasters’ resources exceeded the applicable threshold, the Agencies determined

1 Mrs. Lancaster passed away during this litigation, and thus the Agencies request that her claims be dismissed. But because we dispose of the case on independent grounds, we need not address whether Mrs. Lancaster must be individually dismissed from this appeal. 3 Appellate Case: 25-6000 Document: 49 Date Filed: 12/23/2025 Page: 4

that the Lancasters were not eligible for Medicaid benefits. The district court agreed

and granted the Agencies’ motion.

While the appeal was pending oral argument, the Agencies jointly moved for

summary disposition under Federal Rule of Appellate Procedure 27 and Tenth Circuit

Rule 27.3(A)(1)(b). 2 The Agencies cited Medina v. Planned Parenthood South

Atlantic, which held that the any-qualified-provider provision of the Medicaid Act,

42 U.S.C. § 1396a(a)(23)(A), did not clearly and unambiguously confer an

individually enforceable right under § 1983. 606 U.S. 357. They argued that

Medina’s reasoning also applies to § 1396a(a)(8), the provision at issue in this case.

The Agencies asserted that summary disposition was appropriate because Medina

introduced a supervening change in law: legislation enacted pursuant to Congress’s

spending power, like Medicaid, does not create privately enforceable rights under

§ 1983 unless Congress uses clear, unambiguous, and unmistakable

individual-focused and rights-creating language.

The Lancasters opposed summary disposition, arguing that Medina merely

clarifies existing law as to when a statute creates individual rights. On the merits,

they argued that 42 U.S.C. § 1396a(a)(8) is distinguishable from the provision

addressed in Medina. And in contending that § 1396a(a)(8) confers a private right of

action under § 1983, the Lancasters cited and heavily relied on a Third Circuit case,

Tenth Circuit Rule 27.3(A)(1)(b) allows parties to file “a motion for 2

summary disposition because of a supervening change of law or mootness.” 4 Appellate Case: 25-6000 Document: 49 Date Filed: 12/23/2025 Page: 5

Sabree v. Richman, 367 F.3d 180 (3d Cir. 2004), which made that exact holding. We

denied summary disposition.

II. Discussion

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