Parents' League for Effective Autism Services v. Jones-Kelley

339 F. App'x 542
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 29, 2009
DocketNo. 08-3931
StatusPublished
Cited by1 cases

This text of 339 F. App'x 542 (Parents' League for Effective Autism Services v. Jones-Kelley) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parents' League for Effective Autism Services v. Jones-Kelley, 339 F. App'x 542 (6th Cir. 2009).

Opinion

ROGERS, Circuit Judge.

Defendants Helen Jones-Kelly, Director of the Ohio Department of Job and Family Services, and Sandra Stephenson, Director of the Ohio Department of Mental Health, appeal the district court’s grant of a preliminary injunction enjoining the implementation of two amended state administrative rules. The Parents’ League for Effective Autism Services, along with three children with autism and their guardians, brought this suit under 42 U.S.C. § 1983 claiming violations of their rights under federal Medicaid law. Plaintiffs claimed that amendments to state administrative rules promulgated by defendants deprived them of services required by the federal Early and Periodic Screening, Diagnostic, and Treatment program. The district court granted plaintiffs’ re[544]*544quest for a temporary restraining order and preliminarily enjoined the implementation of the amended rules. The district court found that plaintiffs have a likelihood of success on the merits of their claims, that plaintiffs would suffer irreparable injury absent preliminary injunctive relief, that Ohio would not be harmed by the injunction, and that the public interest would be served by the issuance of the preliminary injunction. The district court did not abuse its discretion in weighing these four factors when it granted plaintiffs’ request for a preliminary injunction.

I.

Plaintiffs are three Medicaid-eligible children and their guardians, and the Parents’ League for Effective Autism Services (“PLEAS”), an association of parents whose children receive services from Step by Step Academy (“SBSA”) under Medicaid. SBSA is a nonprofit treatment center that focuses on providing Applied Behavioral Analysis (“ABA”) services to children with autism.

Federal regulations define autism as a “developmental disability significantly affecting verbal and nonverbal communication and social interaction, generally evident before age three, that adversely affects a child’s educational performance. Other characteristics often associated with autism are engagement in repetitive activities and stereotyped movements, resistance to environmental change or change in daily routines, and unusual responses to sensory experiences.” 34 C.F.R. § 300.8(c)(l)(i). According to plaintiffs’ expert, ABA therapy is a “highly effective form of behavioral treatment” that uses a “one-on-one teaching approach that relies on reinforced practice of various skills,” and “[t]he best treatment plan [for children with autism] will include ABA, the only treatment approach confirmed as effective by a comprehensive evaluation of all proposed therapies in a well know[n] government sponsored review process.” Deck of James A. Mulick, Ph.D., at ¶¶ 20, 21. (citing http://www. health.state.ny.us/community/infants_ ehildren/early_intervention/autism/index. htm).

Plaintiff children receive ABA therapy, along with other services, from SBSA:

Step by Step Academy provides treatment services exclusively for children with autism or related autism spectrum symptoms. This full-day, year round intervention is based on Applied Behavior Analysis, a system of controlling the environment, establishing sequential goals, providing discrete trials for learning with a high rate of repetition, insuring reinforcement of success in learning trials, and planned generalization training. Using one-to-one and small group intervention, the treatment focuses on the amelioration of autism symptoms and skill deficits. Individualized goals within the diagnostic criteria focus on each child’s receptive and expressive language, communication, socialization, self-help skills, and general behavior patterns for optimal learning.

Decl. of Jeffrey A. Christiansen, Psy.D., staff psychologist with SBSA, at ¶ 5. Plaintiffs claim that this therapy provides significant benefits for the plaintiff children. Defendants note that SBSA’s one-to-one ABA therapy is provided at great expense. Defendants claim that in fiscal year 2007, SBSA billed the Ohio Medicaid program approximately $2.6 million for services provided to 42 children, which is one-half of Ohio’s expenditures in the specific Medicaid treatment program that funded SBSA’s services. SBSA’s per pupil cost in 2007 was nearly five-times the average per pupil cost of other providers serving children with autism.

[545]*545Defendant Helen Jones-Kelley is director of the Ohio Department of Job and Family Services (“ODJFS”), and is responsible for the supervision and operation of the Medicaid program in Ohio. Defendant Sandra Stephenson is the Director of the Ohio Department of Mental Health (“ODMH”), and is responsible for adopting rules and standards for services provided by community health facilities. ODJFS works with ODMH to promulgate the Ohio Administrative Code rules that govern Ohio’s Medicaid program. Defendant Kerry Weems is the Acting Administrator of the Federal Centers for Medicare and Medicaid Services (“CMS”), an agency under the Department of Health and Human Services responsible for administering the federal Medicaid program.1

On August 13, 2007, CMS filed proposed rules that would limit Medicaid’s coverage of rehabilitative services. 72 Fed.Reg. 45201. However, Congress placed a moratorium on these and other proposed restrictions on Medicaid spending, and therefore these rules were never adopted. See Pub.L. No. 110-28 § 7001(a); Pub.L. No. 110-252 § 7001(a) (extending moratorium on regulations restricting coverage of rehabilitative services until April 1, 2009); Pub.L. No. 111-5 § 5003(a), (d)(3) (January 4, 2009) (noting a “sense of Congress” that the proposed regulations relating to rehabilitative services should not be promulgated as final regulations).

After CMS proposed restrictions on rehabilitative services, ODJFS promulgated amendments to Ohio’s Administrative Rules. The first amended rule, Ohio Admin. Code § 5122-29-17, redefined Ohio’s Community Psychiatric Supportive Treatment (“CPST”) program, which was the program that funded SBSA’s services. The amendment limited CPST services to those that were rehabilitative in nature. The second amended rule, Ohio Admin. Code § 5101:3-27-02, redefined when Ohio’s Medicaid program would cover community mental health services. This amended rule limited coverage to those services that were rehabilitative, and defined rehabilitative services as those that restore an individual to a prior functional level. These two amended rules were promulgated on February 28, 2008, and were set to go into effect on July 1, 2008.

On March 21, 2008, Gwendolyn Sampson, Acting Associate Regional Administrator at CMS, sent a letter to ODJFS raising concerns about whether SBSA’s services are Medicaid-reimbursable expenditures:

Step by Step has been billing Medicaid for community psychiatric supportive treatment (CPST) for children diagnosed with autism. CPST is a rehabilitative service under Ohio’s State Plan intended to maximize the reduction of symptoms of mental illness in order to restore the individual’s functioning. CMS generally views treatment for autism as habilitative rather than rehabilitative — as such, the CPST claims by Step by Step may not comply with Ohio’s State Plan.

The letter indicated that CMS was deferring payment for the expenditures submitted by SBSA.

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Bluebook (online)
339 F. App'x 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parents-league-for-effective-autism-services-v-jones-kelley-ca6-2009.