l 1\J I f Rl D NOV 2 I 1014
STATE OF MAINE SUPERIOR COURT KENNEBEC, SS. LOCATION: AUGUSTA Docket No. AP-14-16 ~ tv1P"\- ktN -11---11-JL.}- ) MICHAEL J. SIRACUSA, JR., ) ) Petitioner, ) ORDER ON PETITIONER'S M.R. CIV. ) P. 80C APPEAL v. ) ) STATE OF MAINE DEPARTMENT OF ) HEALTH & HUMAN SERVICES, ) ) Respondent. ) ) )
Petitioner Michael J. Siracusa filed a M.R. Civ. P 80C appeal challenging a
February 3, 2014 ruling from the Department of Health and Human Services ("DHHS" or
the "Department") affirming two prior determinations denying Mr. Siracusa's requests
for reimbursement for certain non-emergency medical transportation ("NET") expenses.
Mr. Siracusa's requests were denied because the services he sought reimbursement for
were not covered by MaineCare and-because the visits were not emergencies-he
should have contacted the transportation broker in his area, Coordinated Transportation
Solutions ("CTS"). For the reasons discussed below, the Court affirms the Department's
Decision and denies Petitioner's M.R. Civ. P. 80C appeal.
I. Background
The Department implemented the current NET system on August 1, 2013 after
working closely with the federal government for several years. See generally Record
Tab, DHHS-2, MaineCare Benefits Manual ("MBM") Chapter II. Under the NET
1 system, the Department utilizes brokers to arrange for transportation to MaineCare
covered services for all eligible MaineCare members that reside in the broker's assigned
region. See id. at§ 113.02. Mr. Siracusa resides in Augusta, which is region four. Id. at
§ 113.03. CTS is the NET broker for Mr. Siracusa's region. Id.; Record Tab, A, 2/3/14
Department Decision ("Decision") 1-2 (referencing CTS as Ms. Siracusa's broker).
On November 6 and 7, 2013, Mr. Siracusa submitted two customer
reimbursement forms to CTS seeking reimbursement for his travel from Augusta to the
UMA Dental Health Clinic in Bangor, as well as to Dr. Richard Knipping of Gardiner
Family Chiropractic, PC. See Record, Tab DHHS-5. The forms contain a section for the
medical provider to complete attesting that the person seeking reimbursement, "was seen
by the MaineCare covered service provider" on the dates for which the individual seeks
NET reimbursement. See id. On each of the reimbursement forms submitted by Mr.
Siracusa the words "MaineCare Provider" were crossed out and, on one of them, the term
"MaineCare covered" was crossed out. Id.
CTS denied both of Mr. Siracusa's requests for reimbursement because the
services Mr. Siracusa obtained were not MaineCare covered services. Record, Tab
DHHS-4.
Mr. Siracusa filed a timely request with the Department for an administrative
hearing on each of the two NET reimbursement denials. Record, Tab DHHS-3. The
Hearing Officer held an administrative hearing on December 18,2013. Record, Tab B
(Administrative Hearing Transcript). On February 3, 2014, the Hearing Officer issued
the Decision upholding CTS's denial of reimbursement for Mr. Siracusa's travel
2 expenses. Record, Tab A, Decision 2-3. Mr. Siracusa appealed that decision pursuant to
M.R. Civ. P. 80C on February 26, 2014.
II. Discussion
A. Standard of Review
Under the Administrative Procedures Act ("APA"), an agency's decision may be
reversed or modified by the Court if it determines that the:
Findings, inferences, conclusions or decisions are: (1) In violation of constitutional or statutory provisions; (2) In excess of the statutory authority ofthe agency; (3) Made upon unlawful procedure; (4) Affected by bias or error oflaw; (5) Unsupported by substantial evidence on the whole record; or (6) Arbitrary or capricious or characterized by abuse of discretion.
5 M.R.S. § 11 007( 4)(C). The Court must give "considerable deference to an agency's
interpretation of its rules, regulations, and procedures and will not set it aside, unless the
rule or regulation plainly compels a contrary result." See Fryeburg Health Care Ctr. v.
Dep 't of Human Servs., 1999 ME 122, , 7, 734 A.2d 1141. The petitioner bears the
burden of showing the Department's decision is arbitrary or based on an error of law. !d.
The Court is limited to a review of the administrative record, with few exceptions that are
not applicable to the instant case. 5 M.R.S. § 11006(1). "The court shall not substitute
its judgment for that ofthe agency on questions of fact." 5 M.R.S. § 1107(3). The focus
on appeal is not whether the appellate court would have reached the same conclusion as
the Hearing Officer, but whether the Record contains competent and substantial evidence
that supports the results reached. CWCO, Inc. v. Superintendent of Ins., 1997 ME 226, ,
6, 703 A.2d 1258.
3 B. Whether the MBM and the Hearing Officer's Decision Violate State or Federal Law
Mr. Siracusa argues the Hearing Officer's Decision and the Department's
interpretation of the MBM violate the Social Security Act and Americans with
Disabilities Act ("ADA") of title 42 of the United States Code, regarding Public Health
and Welfare, by denying him reimbursement for the transportation expenses at issue.
While Mr. Siracusa is correct that title 42 affords him certain rights and protections, the
right to reimbursement for transportation to non-MaineCare covered services is not one
of them.
In order to receive federal funds, the Department's MaineCare program must
comply with federal law. See 42 U.S.C. § 1396a(a). Once the federal requirements are
met, states have "substantial discretion to choose the proper mix of amount, scope, and
duration limitations on coverage, as long as care and services are provided in the best
interests of the recipients." Planned Parenthood of Indiana, Inc. v. Comm 'r of Indiana
State Dep 't of Health, 699 F.3d 962, 969 (7th Cir. 2012) (citing Alexander v. Choate, 469
U.S. 287, 303 (1985) (quoting 42 U.S.C. § 1396a(a)(19).
Maine, like all states participating in Medicaid, must submit proposed Medicaid
"state plans" to the Centers for Medicare & Medicaid Services ("CMS"), a division of the
federal Department of Health and Human 'Services. See Douglas v. Indep. Living Ctr. of
S. Cal., Inc., 132 S.Ct. 1204, 1208 (2012). Alternatively, states may apply to CMS for
authority to operate a Medicaid service pursuant to a "waiver," in order to waive certain
of the state plan requirements set forth in section 1396a. See 42 C.F.R. § 430.25(c). 1 If a
1 The Department is operating its NET program pursuant to a waiver. The decision to operate pursuant to a waiver has no significance to the present appeal.
4 state's plan or waiver does not comply with federal requirements, the federal government
may withhold that state's Medicaid funding. See 42 C.F.R. §§ 430.12(c), 430.20, 430.35.
42 C.F.R.
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l 1\J I f Rl D NOV 2 I 1014
STATE OF MAINE SUPERIOR COURT KENNEBEC, SS. LOCATION: AUGUSTA Docket No. AP-14-16 ~ tv1P"\- ktN -11---11-JL.}- ) MICHAEL J. SIRACUSA, JR., ) ) Petitioner, ) ORDER ON PETITIONER'S M.R. CIV. ) P. 80C APPEAL v. ) ) STATE OF MAINE DEPARTMENT OF ) HEALTH & HUMAN SERVICES, ) ) Respondent. ) ) )
Petitioner Michael J. Siracusa filed a M.R. Civ. P 80C appeal challenging a
February 3, 2014 ruling from the Department of Health and Human Services ("DHHS" or
the "Department") affirming two prior determinations denying Mr. Siracusa's requests
for reimbursement for certain non-emergency medical transportation ("NET") expenses.
Mr. Siracusa's requests were denied because the services he sought reimbursement for
were not covered by MaineCare and-because the visits were not emergencies-he
should have contacted the transportation broker in his area, Coordinated Transportation
Solutions ("CTS"). For the reasons discussed below, the Court affirms the Department's
Decision and denies Petitioner's M.R. Civ. P. 80C appeal.
I. Background
The Department implemented the current NET system on August 1, 2013 after
working closely with the federal government for several years. See generally Record
Tab, DHHS-2, MaineCare Benefits Manual ("MBM") Chapter II. Under the NET
1 system, the Department utilizes brokers to arrange for transportation to MaineCare
covered services for all eligible MaineCare members that reside in the broker's assigned
region. See id. at§ 113.02. Mr. Siracusa resides in Augusta, which is region four. Id. at
§ 113.03. CTS is the NET broker for Mr. Siracusa's region. Id.; Record Tab, A, 2/3/14
Department Decision ("Decision") 1-2 (referencing CTS as Ms. Siracusa's broker).
On November 6 and 7, 2013, Mr. Siracusa submitted two customer
reimbursement forms to CTS seeking reimbursement for his travel from Augusta to the
UMA Dental Health Clinic in Bangor, as well as to Dr. Richard Knipping of Gardiner
Family Chiropractic, PC. See Record, Tab DHHS-5. The forms contain a section for the
medical provider to complete attesting that the person seeking reimbursement, "was seen
by the MaineCare covered service provider" on the dates for which the individual seeks
NET reimbursement. See id. On each of the reimbursement forms submitted by Mr.
Siracusa the words "MaineCare Provider" were crossed out and, on one of them, the term
"MaineCare covered" was crossed out. Id.
CTS denied both of Mr. Siracusa's requests for reimbursement because the
services Mr. Siracusa obtained were not MaineCare covered services. Record, Tab
DHHS-4.
Mr. Siracusa filed a timely request with the Department for an administrative
hearing on each of the two NET reimbursement denials. Record, Tab DHHS-3. The
Hearing Officer held an administrative hearing on December 18,2013. Record, Tab B
(Administrative Hearing Transcript). On February 3, 2014, the Hearing Officer issued
the Decision upholding CTS's denial of reimbursement for Mr. Siracusa's travel
2 expenses. Record, Tab A, Decision 2-3. Mr. Siracusa appealed that decision pursuant to
M.R. Civ. P. 80C on February 26, 2014.
II. Discussion
A. Standard of Review
Under the Administrative Procedures Act ("APA"), an agency's decision may be
reversed or modified by the Court if it determines that the:
Findings, inferences, conclusions or decisions are: (1) In violation of constitutional or statutory provisions; (2) In excess of the statutory authority ofthe agency; (3) Made upon unlawful procedure; (4) Affected by bias or error oflaw; (5) Unsupported by substantial evidence on the whole record; or (6) Arbitrary or capricious or characterized by abuse of discretion.
5 M.R.S. § 11 007( 4)(C). The Court must give "considerable deference to an agency's
interpretation of its rules, regulations, and procedures and will not set it aside, unless the
rule or regulation plainly compels a contrary result." See Fryeburg Health Care Ctr. v.
Dep 't of Human Servs., 1999 ME 122, , 7, 734 A.2d 1141. The petitioner bears the
burden of showing the Department's decision is arbitrary or based on an error of law. !d.
The Court is limited to a review of the administrative record, with few exceptions that are
not applicable to the instant case. 5 M.R.S. § 11006(1). "The court shall not substitute
its judgment for that ofthe agency on questions of fact." 5 M.R.S. § 1107(3). The focus
on appeal is not whether the appellate court would have reached the same conclusion as
the Hearing Officer, but whether the Record contains competent and substantial evidence
that supports the results reached. CWCO, Inc. v. Superintendent of Ins., 1997 ME 226, ,
6, 703 A.2d 1258.
3 B. Whether the MBM and the Hearing Officer's Decision Violate State or Federal Law
Mr. Siracusa argues the Hearing Officer's Decision and the Department's
interpretation of the MBM violate the Social Security Act and Americans with
Disabilities Act ("ADA") of title 42 of the United States Code, regarding Public Health
and Welfare, by denying him reimbursement for the transportation expenses at issue.
While Mr. Siracusa is correct that title 42 affords him certain rights and protections, the
right to reimbursement for transportation to non-MaineCare covered services is not one
of them.
In order to receive federal funds, the Department's MaineCare program must
comply with federal law. See 42 U.S.C. § 1396a(a). Once the federal requirements are
met, states have "substantial discretion to choose the proper mix of amount, scope, and
duration limitations on coverage, as long as care and services are provided in the best
interests of the recipients." Planned Parenthood of Indiana, Inc. v. Comm 'r of Indiana
State Dep 't of Health, 699 F.3d 962, 969 (7th Cir. 2012) (citing Alexander v. Choate, 469
U.S. 287, 303 (1985) (quoting 42 U.S.C. § 1396a(a)(19).
Maine, like all states participating in Medicaid, must submit proposed Medicaid
"state plans" to the Centers for Medicare & Medicaid Services ("CMS"), a division of the
federal Department of Health and Human 'Services. See Douglas v. Indep. Living Ctr. of
S. Cal., Inc., 132 S.Ct. 1204, 1208 (2012). Alternatively, states may apply to CMS for
authority to operate a Medicaid service pursuant to a "waiver," in order to waive certain
of the state plan requirements set forth in section 1396a. See 42 C.F.R. § 430.25(c). 1 If a
1 The Department is operating its NET program pursuant to a waiver. The decision to operate pursuant to a waiver has no significance to the present appeal.
4 state's plan or waiver does not comply with federal requirements, the federal government
may withhold that state's Medicaid funding. See 42 C.F.R. §§ 430.12(c), 430.20, 430.35.
42 C.F.R. § 431.53 provides that:
A State plan must-
(a) Specify that the Medicaid agency will ensure necessary transportation to beneficiaries to and from providers; and (b) Describe the methods that the agency will use to meet this requirement.
The Department implemented Section 113 of the MBM to regulate the state's NET
services and to satisfy its responsibilities under this regulation.
Sections 113.06(C) and (F) ofthe MBM require verification of member eligibility
for NET services. Record, Tab DHHS-2, MBM §§ 113.06(C), (F). NET brokers, who
act on behalf of the Department, must ensure that members are eligible by determining
whether the requested trip or requested reimbursement is for a MaineCare-authorized
service for that member.ld. at§§ 113.06(C), (F)(l)(a). NET services are only available
for transportation to MaineCare covered services, and a broker must deny reimbursement
for transportation if a member is determined ineligible. I d. at §§ 113 .04(A) (titled, "Non-
emergency transportation to covered MaineCare services"), 113.09(A)(l) (denial of
services permitted when a member is ineligible for NET services based on the
information provided and available to the Broker). The NET brokers may not allow the
use of Medicaid-funded transportation for any purpose other than as stated in Section 113
of the MBM, or for purposes in violation of any state or federal law. I d. at § 113.1 O(B).
Here, the MBM' s requirement that reimbursable NET expenses are limited to
MaineCare authorized services is not an abuse of discretion and does not violate 42
C.F.R. § 431.53, the Social Security Act, the ADA, or any other applicable federal laws.
5 This is because section 431.53(a) requires the Department to "ensure necessary
transportation for beneficiaries to and from providers[.]" 42 C.F.R. § 431.53(a). Since
section 431.53(a) does not define the term providers, the Department has substantial
discretion to interpret the term "as long as care and services are provided in the best
interests ofthe recipients." See Planned Parenthood of Indiana, Inc., 699 F.3d at 969
(citing Alexander v. Choate, 469 U.S. at 303 (quoting 42 U.S. C. § 1396a(a)(19))). The
Department's interpretation of this requirement as restricting NET services-and
reimbursement thereof-to transportation for MaineCare covered services is a reasonable
exercise of the Department's discretion and does not violate federal law. See also 42
C.F.R. § 431.43 (explaining that section 1902(a)(23) ofthe Social Security Act, codified
at 42 U.S.C. § 1396a(23), "provides that beneficiaries may obtain services from any
qualified Medicaid provider that undertakes to provide the services to them" (emphasis
added).
Furthermore, the Hearing Officer did not abuse her discretion in denying Mr.
Siracusa's reimbursement request. This is because the services Mr. Siracusa sought
reimbursement for were not MaineCare covered services and thus not available for
reimbursement under the MBM. Record, Tab DHHS 5 (Reimbursement Request Forms);
Tab 4 DHHS 4 (Denials of Reimbursement Requests); see also Record, Tab DHHS-2,
MBM §§ 113.04(C), (F).
The authority cited by Mr. Siracusa does not compel a different result. For
example, 42 C.F.R. § 440.390 does not apply to the present case because it concerns
"benchmark" coverage, which is inapplicable to the present situation. See 42 C.F.R. §
440.305. Furthermore, even if section 440.390 were applicable, it would cut against Mr.
6 Siracusa's position as it provides that the State must assure "transportation to and from
medically necessary covered Medicaid services." 42 C.P.R. § 440.390 (emphasis added).
The services Mr. Siracusa seeks reimbursement for were not MaineCare covered
services. Record, Tab DHHS 5 (Reimbursement Request Forms); Tab 4 DHHS 4
(Denials of Reimbursement Requests).
Mr. Siracusa also directs the court to Harris v. James, 127 F.3d 993 (11th Cir.
1997). In that case, the court analyzed whether, pursuant to 42 C.P.R. § 431.35 and 42
U.S. C. § 1983, there is a private, enforceable right to transportation to and from Medicaid
providers. Id. at 1008-09. The eleventh circuit determined no such right existed. Id. In
Morgan v. Cohen, to which Mr. Siracusa also directs the Court, the United States District
Court for the Eastern District ofPennsylvania determined that 42 C.P.R.§ 431.53 does
create an enforceable right to transportation for Medicaid covered services. 665 F.Supp.
1164, 1167 (E.D.Pa. 1987). In both Harris and Morgan, the plaintiffs sought to protect
and enforce their alleged right to transportation to and from Medicaid covered services.
Harris, 127 F.3d at 1012 (" ... we conclude that plaintiffs do not have a federal right,
enforceable under [42 U.S.C.] § 1983, to transportation to and from Medicaid providers);
Morgan, 665 F .Supp. at 1165 (plaintiffs are eligible to attend psychiatric services
"subsidized by the medical assistance (Medicaid) program ... "). Accordingly, Harris and
Morgan are inapposite because they involved reimbursement for covered services, unlike
those for which Mr. Siracusa seeks reimbursement. Record, Tab DHHS 5
(Reimbursement Request Forms); Tab 4 DHHS 4 (Denials of Reimbursement Requests). 2
2 The other cases cited by Mr. Siracusa are also inapposite: Barday v. Donnelly, 2006 WL 381876 (Me. Super. Jan 27, 2006) involved a personal injury/negligence case where Maine Care was an insurer of one of the parties and there were issues regarding the proper
7 C. Whether the Hearing Officer Entertained Bias Against Mr. Siracusa
Mr. Siracusa alleges that the Hearing Officer, Miranda Benedict, entertained a
bias against him and had determined she would rule against him before hearing his
argument.
In order to show bias, Mr. Siracusa must present evidence sufficient to overcome
a presumption that the fact-finders, as state administrators, acted in good faith. Friends
of Maine's Mountains v. Bd. of Envtl. Prot., 2013 ME 25, ~ 23, 61 A. 3d 689 (citing
Mallinckrodt LLC v. Littell, 616 F.Supp.2d 128, 142 (D.Me.2009)). "Without a showing
to the contrary, state administrators 'are assumed to be men [and women] of conscience
and intellectual discipline." Mallinckrodt LLC, 616 F.Supp.2d at 142.
Here, Mr. Siracusa does not present evidence sufficient to overcome the
presumption that Ms. Benedict acted in good faith and in an unbiased manner. While the
Court understands why Mr. Siracusa was disconcerted by Ms. Benedict meeting with a
member of the Department prior to the hearing, the record presents no evidence of bias.
As discussed above, the Court has found that Ms. Benedict properly applied the law to
the facts of Mr. Siracusa's case. In addition, the Court's review of the hearing transcript
reveals no evidence of improprieties or bias by Ms. Benedict against Mr. Siracusa.
amount of damages and In the Case of Port Hudson Hospital Provider v. Blue Cross Blue Shield Association, 2008 WL 6468501 (Dep't of Health & Human Services Sept. 14, 2008) involved a decision of the Administrator of CMS regarding provider reimbursement and issues of dual eligibility. The cases do not address whether transportation expenses to services not covered by MaineCare-or Medicare or Medicaid-must be reimbursed pursuant to state or federal law. Mr. Siracusa's additional references to other sources of law, including website links and lists of various sections of state and federal statutes are likewise inapposite.
8 III. Conclusion
The Social Security Act, the ADA, and federal case law do not prohibit the
Department from restricting reimbursement for NET expenses to MaineCare authorized
services. Therefore, because the services Mr. Siracusa seeks reimbursement for were not
to MaineCare authorized services, the Hearing Officer did not err in denying Mr.
Siracusa's request. Finally, Mr. Siracausa has not presented sufficient evidence to
support his claim that the Hearing Officer was biased against him, or otherwise acted in
an 1mproper manner.
The entry will be: Petitioner's M.R. Civ. P. 80C Appeal is DENIED.
Pursuant to M.R. Civ. P. 79(a), the Clerk is hereby directed to incorporate this
Order by reference in the docket.
Dated: November lj, 2014 Michaela Murphy, J Maine Superior Court
9 Date Filed 2/26/14 Kennebec Docket No. AP-.14-16 F County Action: Petition for Review soc J. Murphy
Michael Siracusa, Jr. vs. Department of Health & Human Services
Plaintiffs Attorney Defendant's Attorney
Michael Siracusa, Jr. -ProSe Halliday Moncure, AAG 297 Cony Road 6 State House Station Augusta, ME 04330-0502 Augusta, ME 04333-0006
Date of Entry
2/27/14 Petition for Judicial Review of Final Agency Action, filed 2/26/14. s/Siracusa, ProSe Application to Proceed Without Payment of Fees and lndigency Affidavit, filed 2/26/14.
3/5/14 ORDER, Murphy, J. The filing fee is waived. The service costs shall be paid as an expense of administration. Copy to Petitioner
3/19/14 Certified Mail receipts, filed 3/14/14. s/Siracusa, ProSe .- DHHS Commissioner, Administrative Hearings Office, Attn: Miranda Benedict, Esq., delivered 2/18/14 (no signature). - DHHS Commissioner, Administrative Hearings Office, Attn: Gisele Biron, Supt DHHS, delivered 2/18/14 (no signature).
3/28/14 Entry of Appearance, filed 3/27/14. s/Moncure, AAG
3/28/14 Respondent's Motion For Enlargement Of Time To File The SOC Record, filed 3/27/14. s/Moncure, AAG
3/28/14 Objection to "Enlargement of Time," and Request to Seal Certified Record, filed. s/Siracusa, Pro Se
4/16/14 Respondent's Objection to Petitioner's Motion to Seal Certified Record, filed (4/11/14). s/Moncure, AAG
4/29/14 Certified Record, filed 4/28/14. s/Moncure, AAG (Sealed pending ruling on Request to Seal filed by Petitioner on 3/28/14)
4/29/14 Notice and Briefing Schedule issued. Copy to Petitioner and AAG Moncure
Page 1 AP-14-16 4/30/14 ORDER, Murphy, J. (4/29/14) (re: Respondent's Motion for Enlargement of Time) The time by which the certified Record must be filed in this matter shall be extended to 5/9/14. Copy to Petitioner and AAG Moncur-e
4/30/14 ORDER, Murphy, J. (4/29/14) (re: Petitioner's Request to Seal Certified Record) Court will defer ruling on this motion until it reviews record from Respondent. Clerk to present record to Court before it is docketed and/or placed in public file. Copy to Petitioner and AAG Moncure
5/2/14 ORDER, Murphy, J. The Court has reviewed the record. The Motion to Seal is DENIED. Copy to Petitioner and AAG Moncure
5/12/14 Brief of Petitioner, filed (5/8/14). s/Siracusa, ProSe
6/9/14 Brief of Respondent, filed. s/Moncure, AAG
6/25/14 Petitioner's Rebuttal, filed 6/24/14. s/Siracusa, ProSe
6/25/14 Oral Argument scheduled for 9/3/14 at 1:30. Notice of Hearing sent to Petitioner and AAG Moncure
6/27/14 Letter requesting the matter be submitted on the briefs, filed. s/Moncure, MG
9/3/14 Oral argument held, J. Murphy presiding. Michael Siracusa, Jr., ProSe and Halliday Moncure, MG Tape 1898, Index 2150-2716 Under advisement.
11/19/14 ORDER ON PETITIONER'S 80C APPEAL, Murphy, J. Petitioner's M.R.Civ.P. 80C Appeal is DENIED. Copy to Petitioner and AAG Moncure Copy to Repositories
11/19/14 Notice of removal of Record sent to AAG Moncure
Page 2 AP-14-16