Medicare&medicaid Gu 35,879 Massachusetts Association of Older Americans v. Commissioner of Public Welfare

803 F.2d 35, 1986 U.S. App. LEXIS 32254
CourtCourt of Appeals for the First Circuit
DecidedOctober 15, 1986
Docket86-1126
StatusPublished
Cited by18 cases

This text of 803 F.2d 35 (Medicare&medicaid Gu 35,879 Massachusetts Association of Older Americans v. Commissioner of Public Welfare) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medicare&medicaid Gu 35,879 Massachusetts Association of Older Americans v. Commissioner of Public Welfare, 803 F.2d 35, 1986 U.S. App. LEXIS 32254 (1st Cir. 1986).

Opinions

BOWNES, Circuit Judge.

The Massachusetts Commissioner of Public Welfare, defendant-appellant, appeals from a district court order holding him in civil contempt. The district court found that defendant violated an injunction contained in a so-called Partial Final Judgment issued on May 25, 1983, the judgment having been issued in accordance with the decision of this court in Massachusetts Ass’n of Older Americans v. Sharp, 700 F.2d 749 (1st Cir.1983). The Commissioner contends that his implementation of the judgment does not violate the injunction, and, moreover, that, read in conjunction with the contempt finding’s remedial order, the terms of that judgment are too vague to constitute a valid exercise of judicial authority. We affirm the district court’s ruling.

I. Prior Proceedings

The injunction allegedly violated stems from a challenge to the Massachusetts Department of Public Welfare’s practice of automatically terminating a person’s Medicaid benefits when his or her Aid to Families with Dependent Children (AFDC) or Supplemental Security Income (SSI) benefits were terminated. AFDC and SSI recipients, the “categorically needy,” 42 C.F.R. § 435.4 (1985), are automatically eligible for Medicaid, 42 U.S.C. § 1396a(a)(10)(A) (1982). A state participating in the Medicaid program may also choose to provide assistance to other people, known as the “medically needy,” 42 C.F.R. § 435.4, whose income is too large to qualify for other federal financial assistance programs. Thus, in Massachusetts, which has so chosen, Mass.Gen.Laws Ann. ch. 118E, § 1 (Supp.1986), recipients may lose their status as “categorically needy” and yet retain their Medicaid benefits as “medically needy.”

The Massachusetts Department of Public Welfare (“the Department”) had been fol[37]*37lowing a policy of terminating Medicaid for recipients upon their termination from AFDC or SSI and advising them that they could reestablish their eligibility for Medicaid by filing an independent application for that program. A challenge to this practice was brought in United States District Court for the District of Massachusetts as a class action. A subclass of the certified class sought and was denied a preliminary injunction to prevent the termination of its members’ Medicaid benefits. The subclass appealed the denial of its motion to this court. We reversed, remanding to the district court with instructions to grant the preliminary injunction, Massachusetts Ass’n of Older Americans v. Sharp (“Sharp”), 700 F.2d at 754. On May 25, 1983, the district court issued a Partial Final Judgment, covering the entire certified class, which ordered the Department to continue Medicaid benefits to those terminated from AFDC or SSI pending reexamination of their cases for verification of continuing eligibility.

The Department responded to the Partial Final Judgment by converting AFDC and SSI recipients who had had their benefits terminated to an appropriate “medically needy” category of Medicaid and continuing to provide Medicaid benefits without interruption. It then reexamined the cases to verify continuing eligibility for those benefits. The Department’s conduct of this reexamination process, the history of which was the reason for the contempt citation, proceeded differently in the case of former AFDC, as opposed to former SSI, recipients.

For AFDC cases, the Department initially had Medicaid workers reexamine the files of the terminated recipients. Based on the materials in the file, the worker would take one of three actions: make a determination of Medicaid eligibility or ineligibility; request further information from the recipient if necessary to complete the file; or schedule a full redetermination if eligibility could not be otherwise determined. If, after this procedure, the recipient was found to be ineligible, he or she would be terminated from Medicaid. If the recipient was determined to be eligible, Medicaid entitlement was considered to be established as of the day after the AFDC termination and a full redetermination was scheduled for six months after that date.

This verification system essentially remained unchanged until September, 1984.1 At that time, the Department, without informing the district court, the plaintiffs or the public, modified its procedures by dividing the AFDC cases into three categories. First, if AFDC benefits had been terminated for unearned excess income or excess assets, continuing eligibility for Medicaid was determined by computer and the recipient sent the appropriate notification. Second, if the AFDC case had been terminated for reasons that suggested that the recipient would soon reestablish AFDC eligibility, and therefore Medicaid eligibility, no action was taken for thirty days. If this reestablishment did not occur, the recipient was sent a “redetermination form,” requesting information relating to eligibility. This form, mailed out at regular intervals to all Medicaid recipients as part of verification of continuing eligibility, requested information substantially identical to that requested of new applicants for Medicaid. The third category consisted of the remaining recipients terminated from AFDC; they were sent Medicaid redetermination forms at the same time as their AFDC termination.

As to SSI recipients whose benefits had been terminated, the Department’s reexamination process, implemented after the Partial Final Judgment, remained unchanged throughout the period at issue. Upon termination from SSI, recipients were mailed a Medicaid redetermination form by the Department.

For those former AFDC and SSI recipients sent redetermination forms, continued [38]*38Medicaid eligibility depended solely on the information provided on those forms. The Department did not make a prior assessment of the information in the recipient’s current file. If the redetermination form was not returned to the Department within thirty days, the Department sent notice of the termination of Medicaid benefits. The notice also advised the recipient of the opportunity to request a hearing.

In April, 1985, the plaintiffs requested the district court to hold the Department in contempt. They alleged that the Department had failed to obey the Partial Final Judgment for AFDC terminations since September, 1984, and had never complied with the court’s order regarding the SSI cases. Plaintiffs contended that the Department’s practice was substantially similar to its prejudgment practice of notifying recipients at the time of their termination from AFDC that they could reestablish Medicaid eligibility by filing an independent Medicaid application. Plaintiffs claimed, and the Department did not dispute, that, at least with regard to the terminated AFDC cases, recipients had often undergone a redetermination just prior to their termination from that program. There was testimony to the effect that the various requests for information confused recipients and were often duplicative.

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Bluebook (online)
803 F.2d 35, 1986 U.S. App. LEXIS 32254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medicaremedicaid-gu-35879-massachusetts-association-of-older-americans-v-ca1-1986.