Philadelphia Welfare Rights Organization v. O'Bannon

517 F. Supp. 501, 1981 U.S. Dist. LEXIS 14431
CourtDistrict Court, E.D. Pennsylvania
DecidedJune 30, 1981
DocketCiv. A. 80-3328
StatusPublished
Cited by15 cases

This text of 517 F. Supp. 501 (Philadelphia Welfare Rights Organization v. O'Bannon) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philadelphia Welfare Rights Organization v. O'Bannon, 517 F. Supp. 501, 1981 U.S. Dist. LEXIS 14431 (E.D. Pa. 1981).

Opinion

MEMORANDUM

CLIFFORD SCOTT GREEN, District Judge.

In this class action suit the Philadelphia Welfare Rights Organization and several named plaintiffs challenge the elimination from coverage of the adult eyeglass and orthopedic shoe programs under the state regulations implementing the federal Medical Assistance program, 42 U.S.C. § 1396 et seq. Plaintiffs seek to permanently enjoin the individual defendants of the Pennsylvania State Department of Public Welfare (“DPW”) from terminating these services. Plaintiffs rely on several grounds, including the charge that the termination of benefits violates the recipients’ due process rights under the Fourteenth Amendment of the U.S. Constitution and their rights under regulations promulgated by the U.S. Department of Health & Human Services (formerly “The U.S. Department of Health, *504 Education & Welfare” or “HEW”) to implement 42 U.S.C. § 1396 et seq. After consideration of the evidence presented at final hearing and the arguments and memoranda submitted on behalf of the parties, I deny the relief requested. 1

I. THE FACTS

Pursuant to 42 U.S.C. § 1396 et seq. Pennsylvania participates in a federal-state cost sharing program to provide medical assistance to needy families with dependent children and to low-income people who are aged, blind or disabled. On June 28, 1980 defendants published a public notice in the Pennsylvania Bulletin providing that effective September 1, 1980 it would terminate, inter alia, eyeglasses and orthopedic shoes for individuals over 21 years of age. 2 During the week of July 25, 1980 DPW sent individual notices to recipients that coverage of the eyeglass program would end on September 1, 1980; however, unlike the public notice, which did not include those aged 21, the individual notice stated the program would exclude persons 21 years of age and older. Also, at the end of July 1980 DPW sent individual notices to recipients of the orthopedic shoe program that effective October 1, 1980 the Medical Assistance Program would not pay for shoes for individuals 21 years of age or older. Thereafter, on August 2, 1980 DPW published another public notice which restated its intent to terminate the adult eyeglass program on September 1, 1980, this noticed defined adults as age 21 or over.

In addition to a challenge to subject matter jurisdiction by defendants, the issues presented by this law suit are; (1) whether DPW’s notices to individual recipients announcing the programs’ terminations were violative of the applicable federal agency regulations in that the notices required that all Medical Assistance recipients must file their appeals by September 30, 1980, (2) whether DPW’s public notice of June 28, 1980 was legally sufficient as to the eyeglass program and whether DPW’s public notice of August 2, 1980 announcing termination of the eyeglass program on September 1,1980 violated 42 C.F.R. § 447.-205 in that it followed, rather than preced *505 ed, the notice to individual recipients and that allegedly it was published less than 60 days before termination of the program was scheduled to become effective, (3) whether the termination of the adult eyeglass program violated the “best interests” clause of 42 U.S.C. § 1396a(a)(19) in that termination of the program would leave many of the recipients financially unable to buy glasses, (4) whether termination of the adult eyeglass program violated 42 U.S.C. § 1396d(a)(12) by impermissibly singling out one service within a group of optional services, (5) whether DPW failed to appoint adequate numbers of consumers to and failed to “fully consult” with the state’s Medical Assistance Advisory Committee (“MAAC”) prior to attempting to terminate the programs, (6) whether the DPW’s public notice of August 2, 1980 which announced the termination of the eyeglass program violated the Commonwealth Documents Act, 45 P.S. § 1102 et seq. and (7) whether the cut-off date of September 30, 1981 by which all Medical Assistance recipients had to file appeals contravenes the Due Process Clause.

II. DISCUSSION

A. Defendants' Contention that this Court Lacks Jurisdiction.

The defendants argued, prior to the amendment of 28 U.S.C. § 1331, that this court lacked subject matter jurisdiction over this case because the plaintiffs’ case lacked actual damages in controversy of $10,000 as was then required by the statute. 3 Secondly, defendants contend that under 28 U.S.C. § 1343(a)(3) plaintiffs’ due process claim is frivolous because its effect would be to preclude termination of the eyeglass program indefinitely.

On December 1, 1980, the Congress amended section 1331 to eliminate the $10,-000 amount in controversy requirement. Since there is now no damage requirement, jurisdiction exists under section 1331.

As to 28 U.S.C. § 1343(aX3) 4 I do not find that plaintiffs’ due process claim is frivolous as it is well established that plaintiffs need only allege a constitutional claim of sufficient magnitude to invoke this court’s jurisdiction. Hagans v. Lavine, 415 U.S. 528, 94 S.Ct. 1372, 39 L.Ed.2d 577 (1974). Clearly, plaintiffs’ contention that “the notice sent to recipients was seriously deficient for it failed to fully and clearly explain the proposed cutbacks as well as denying individuals a right to a hearing” meets the test of a sufficient allegation of a constitutional claim.

B. The Need for DPW to give Medical Assistance Recipients Notice and a Hearing before Terminating Benefits

Turning now to the merits, plaintiffs argue that the notice sent to individual recipients informing them of the termination of orthopedic shoes and eyeglasses for adults was defective because it contained a cut-off date, September 30,1980; an appeal after said date would not be heard. The notices sent to individuals for both programs contain the same language regarding appeals which reads in pertinent part:

These changes apply to all persons eligible for services under the Medical Assistance Program.

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517 F. Supp. 501, 1981 U.S. Dist. LEXIS 14431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-welfare-rights-organization-v-obannon-paed-1981.