Ranschburg v. Toan

709 F.2d 1207
Court of Appeals for the Eighth Circuit·Decided June 8, 1983·No. No. 82-1847·Published·Cited by 18 cases

Opinion

BENNETT, Circuit Judge.

This is an appeal from an order of the district court,1 540 F.Supp. 745 (W.D.Mo. 1982), granting a permanent injunction against the Missouri State Director of the Department of Social Services and the Director of the Division of Family Services from denying Utilicare benefits, Mo.Ann. Stat. §§ 660.100-.135 (Vernon Supp.1983), to plaintiff-appellee and others similarly situated. The basis for granting the injunction was that the Missouri Utilicare statute violated the Equal Protection Clause of the Fourteenth Amendment. For the reasons that follow, we affirm the order of the district court.

I. Background.

The Missouri Utilicare program provides financial assistance of up to $150 per year for the primary heating source to heads of households or their spouses who are “elderly” or “disabled” and whose incomes do not exceed $7,500 for the prior calendar year.2 The term “elderly” is defined in the statute to include all persons “having reached the age of sixty-five.”3 Mo.Ann.Stat. § 660.-100.2 (Vernon Supp.1983). On the other hand, the term “disabled” is defined to include only those “totally and permanently disabled or blind” persons4 who happen to be receiving one of the following types of public assistance benefits: (1) federal social security disability benefits, (2) federal supplemental security income benefits, (3) veterans administration benefits, (4) state blind pension pursuant to sections 209.010 to 209.160 of the Revised Statutes of Missouri (RSMo), (5) state aid to blind persons [1209]*1209or (6) state supplemental payments pursuant to section 208.030, RSMo. Id.

The Missouri legislature’s reason for limiting the class of disabled persons who may receive Utilicare benefits is not apparent from the face of the statute and no legislative history is available.5 We note, however, that a common feature of the programs listed in section 660.100.2 is that only the aged or disabled may receive benefits under these programs.

The plaintiff-appellee is a totally and permanently disabled person whose income did not exceed $7,500 for the calendar year 1980. Although she did not receive benefits under any of the statutorily enumerated programs, she was a participant in Missouri’s Medical Assistance program. This program provides financial assistance with medical bills to certain needy individuals. Although this program is not limited to the aged or disabled, they are included among the eligible recipients. See Mo.Ann.Stat. § 208.151 (Vernon Supp.1983). As the parties here stipulated, disabled persons who receive Medical Assistance benefits have been determined to be disabled under standards as restrictive as the federal standards for disability under the Social Security or the Supplemental Security Income disability statutes. These federal standards have been adopted by Missouri for the purpose of determining disability for Medical Assistance eligibility.

Because appellee received benefits under the Medical Assistance program rather than under one of the public benefit programs listed in section 660.100.2 of the Utilicare statute, her application for Utilicare benefits was denied by the Missouri Division of Family Services. As a result, appellee brought this action under 42 U.S.C. § 1983 (Supp. V 1981) on her behalf, and on behalf of all others similarly situated,6 against the defendants-appellants Barrett Toan, Director of the Missouri Department of Social Services, and James R. Moody, Director of the Missouri Division of Family Services. She sought declaratory and injunctive relief against the defendants’ policy of excluding needy, disabled recipients of medical assistance from eligibility for Utilicare benefits solely because they did not receive benefits under one of the statutorily enumerated programs. The district court held that the challenged classification did not rationally further a legitimate state interest, and that therefore the Utilicare statute violated the Equal Protection Clause of the Fourteenth Amendment. The court thus permanently enjoined the defendants from denying Utili-care benefits to the plaintiff class and denied defendants’ motion for summary judgment.

II. Discussion.

In the area of economics and social welfare, traditional equal protection analysis requires that the state establish that the challenged classification is rationally related to some legitimate governmental interest. See, e.g., United States Department of Agriculture v. Moreno, 413 U.S. 528, 533, 93 S.Ct. 2821, 2825, 37 L.Ed.2d 782 (1973); Dandridge v. Williams, 397 U.S. 471, 485, 90 S.Ct. 1153, 1161-62, 25 L.Ed.2d 491 (1970); Medora v. Colautti, 602 F.2d 1149, 1152 (3d Cir.1979); Alcala v. Burns, 545 F.2d 1101, 1104 (8th Cir.1976), cert. denied, 431 U.S. 920, 97 S.Ct. 2187, 53 L.Ed.2d 232 (1977). On this test the parties are in agreement, but not on its application to the facts of this case.

Although the apparent purpose of the Utilicare statute is to help the needy disabled with their home heating bills, see Mo.Ann.Stat. § 660.100.1, the Missouri legislature has limited the class of needy, disabled persons who may receive Utilicare [1210]*1210benefits to those needy, disabled persons who receive benefits under one of the public assistance programs listed in section 660.-100.2 of the statute. All other needy and disabled persons are ineligible for Utilicare benefits. Appellee contends that this statutory classification, as applied to the class she represents, is not rationally related to a legitimate governmental interest. As noted by the district court, the only distinction between the group of persons who are eligible to receive Utilicare benefits and the plaintiff class is that members of the plaintiff class were receiving Medical Assistance benefits instead of public assistance benefits under one of the programs listed in section 660.100.2. See 540 F.Supp. at 748. Whether this classification was the result of oversight or the legislature’s considered judgment is perhaps arguable. In deference to the legislature we will assume it was deliberate.

Appellants, of course, now contend that the resulting difference in treatment between the two groups is rationally related to a legitimate state interest. During the course of this litigation, they have advanced three reasons why this classification is “rationally based.” First, before the district court, they contended that the challenged classification was rationally based because it allocated a limited amount of funding to the state’s most needy citizens. Id. Although the district court found the allocation of limited state funds7 to the most needy to be a legitimate state interest, it did not believe that the challenged classification was rationally related to furthering this state interest. Id. at 749.

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Ranschburg v. Toan, 709 F.2d 1207 (8th Cir. 1983).

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Ranschburg v. Toan
709 F.2d 1207 (Eighth Circuit, 1983)