Mullins v. Kenley

639 F. Supp. 1252, 1986 U.S. Dist. LEXIS 22665
CourtDistrict Court, W.D. Virginia
DecidedJuly 17, 1986
DocketCiv. A. 85-0014-A
StatusPublished

This text of 639 F. Supp. 1252 (Mullins v. Kenley) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mullins v. Kenley, 639 F. Supp. 1252, 1986 U.S. Dist. LEXIS 22665 (W.D. Va. 1986).

Opinion

MEMORANDUM OPINION

GLEN M. WILLIAMS, District Judge.

The plaintiffs, Bluford Mullins and Fannie Ratliff, filed claims for Medicaid benefits on May 4, 1984 and April 17, 1984, respectively. These claims were denied. Plaintiffs now maintain that certain of the policies and procedures adopted by the State of Virginia for adjudication of such claims are in violation of the United States Constitution, as well as various federal statutes and regulations. In a complaint filed on January 7, 1985, plaintiffs seek declaratory and injunctive relief. Jurisdiction of this court is asserted pursuant to 28 U.S.C. § 1331 and 28 U.S.C. § 1343(a)(3). The case is now before the court on cross motions for summary judgment.

DESCRIPTION OF THE PROGRAM

Medicaid is a jointly funded federal-state program administered pursuant to Title XIX of the Social Security Act, 42 U.S.C. § 1396, et seq. Stated succinctly, the primary purpose of the program is to provide medical assistance to indigent families with children, and to blind, disabled, or elderly individuals. Participating states administer the program pursuant to 42 U.S.C. § 1396a. While these states retain some discretion in the administration of the program, it is well settled that because of the substantial financial contribution of the federal government, the states must adhere to certain federal requirements in their implementation of the program objectives. King v. Smith, 392 U.S. 309, 317, 88 S.Ct. 2128, 2133, 20 L.Ed.2d 1118 (1968); Smith v. Miller, 665 F.2d 172 (7th Cir. 1981).

Pursuant to the governing statutory and regulatory framework, there are two general categories of individuals who are eligible for Medicaid benefits. All participating states are required to provide benefits to “categorically needy” persons. The “cate *1254 gorically needy” include all those persons receiving federal aid through such programs as Supplemental Security Income (SSI) and Aid to Families with Dependent Children (AFDC). See, gen., 42 U.S.C. § 1396a(a)(10)(A)(i). The second category encompasses two subcategories: (1) “optional categorically needy,” which includes those persons who meet certain of the eligibility requirements for SSI or AFDC benefits, but who do not receive those benefits (See 42 C.F.R. § 435.200 et seq.) and (2) “medically needy,” which includes persons who meet certain medical and financial standards, but who are not otherwise “categorically” eligible (See 42 C.F.R. § 435.-300 et seq.).

The State of Virginia participates in the Medicaid Program. Under the Virginia program, benefits are extended to the “categorically needy” and the “medically needy.” In determining eligibility for Medicaid benefits on the basis of disability, Virginia has chosen to use the same definition of disability as that employed in the adjudication of claims for SSI benefits under Title XVI of the Social Security Act. Indeed, in those instances in which a claimant has filed a claim for SSI benefits, Virginia generally adopts the Social Security Administration’s decision as to disability in determining the claimant’s eligibility for Medicaid benefits. However, Virginia must undertake an independent determination as to the claimant’s disability in those cases in which the Social Security Administration denies or terminates SSI benefits on the basis of eligibility requirements unrelated to the claimant’s capacity for work, e.g., excess income or resources. 1

Under the Virginia procedure, a Medicaid claimant first files application for benefits with the Medicaid Disability Unit of his local Department of Social Services (DSS). 2 If the claim is denied at this level, a claimant may request a hearing before a Hearing Officer employed by the Virginia Department of Medical Assistance Services (DMAS). 3 After the hearing, the Hearing Officer prepares a report, setting forth findings of fact, conclusions of law, and recommended disposition. The report is forwarded to the DMAS Appeals Board, which makes the final administrative decision on eligibility issues.

SUMMARY OF THE FACTS

Both plaintiffs are former recipients of SSI benefits. Each of the plaintiffs eventually became ineligible for SSI benefits due to increases in income which placed their total income slightly above that permitted under the SSI Program. In Mr. Mullins’ case, the receipt of federal black lung benefits resulted in the termination of his SSI benefits. In Mrs. Ratliff's case, her husband’s receipt of black lung benefits necessitated termination of SSI benefits. During the period in which they were entitled to SSI benefits, both plaintiffs were also eligible for Medicaid coverage as “categorically needy” persons.

After the termination of their SSI benefits, both plaintiffs filed application for Medicaid benefits with their local DSS office. Both plaintiffs claimed entitlement to Medicaid benefits as category-related “medically needy” persons who meet the SSI requirement of disability. Both applications were denied at the DSS level. In each case, the appropriate Medical Disabili *1255 ty Unit determined that the claimant was not disabled. Upon the denial of their claims, each plaintiff requested a hearing before a Hearing Officer of the DMAS. After the hearing in Mrs. Ratliffs case, the Hearing Officer recommended that the Appeals Board sustain the agency’s denial of Medicaid benefits. However, in Mr. Mullins’ case, the Hearing Officer recommended that the Appeals Board overturn the agency’s action and award benefits. Nevertheless, in both Mr. Mullins’ case and Mrs. Ratliff’s case, the Appeals Board ultimately upheld the agency action and denied entitlement to Medicaid benefits on the basis of a finding of no disability.

PLAINTIFFS’ ALLEGATIONS

In their complaint, the plaintiffs allege that the standards, policies, and procedures which were employed in the denial of their Medicaid claims were in violation of various federal statutes, regulations, and constitutionally protected rights. Plaintiffs have cited six separate arguments in support of their contentions. In the court’s view, plaintiff’s arguments are best treated as falling in two separate categories.

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Bluebook (online)
639 F. Supp. 1252, 1986 U.S. Dist. LEXIS 22665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mullins-v-kenley-vawd-1986.