Lancaster v. Cartmell

Court of Appeals for the Tenth Circuit·Decided December 23, 2025·No. 25-6000·Published

Opinion

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-infact ,

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.

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

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.

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.”

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

II. Discussion

As we explain, Medina requires us to conclude that § 1396a(a)(8) does not clearly and unambiguously confer a private right of action enforceable under § 1983.

A. 42 U.S.C. § 1396a(a)(8)

In 1965, Congress enacted the Medicaid Act pursuant to its spending power “to subsidize state efforts to provide healthcare to families and individuals whose income and resources are insufficient to meet the costs of necessary medical services.” Medina, 606 U.S. at 363 (citation modified). To receive those federal funds, States must submit a State plan for providing medical assistance and substantially comply with a series of conditions imposed by the Medicaid Act. 42 U.S.C. §§ 1396a(a), 1396c. One such condition is that “[a] State plan for medical assistance must . . . provide that all individuals wishing to make application for medical assistance under the plan shall have opportunity to do so, and that such assistance shall be furnished with reasonable promptness to all eligible individuals.” § 1396a(a)(8).

This is the provision that the Lancasters argue the Agencies violated by denying them Medicaid benefits despite their alleged eligibility.

B. Medina v. Planned Parenthood South Atlantic, 606 U.S. 357 (2025)

In Medina, the Supreme Court considered whether an adjacent provision of the Medicaid Act, § 1396a(a)(23)(A), also known as the any-qualified-provider

provision, conferred an individually enforceable right under § 1983. It determined that it did not.

1. Private Enforceable Rights under § 1983 The Court began by explaining that while “§ 1983 allows private parties to sue state actors who violate their ‘rights’ under ‘the Constitution and laws’ of the United States,” not all federal statutes confer enforceable rights. Medina, 606 U.S. at 365– 66 (citing Health & Hosp. Corp. of Marion Cty. v. Talevski, 599 U.S. 166, 183 (2023)).

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