Susan I. MEUSBERGER, Appellee, v. Charles M. PALMER, Director of the Iowa Department of Human Services, Appellant

900 F.2d 1280
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 30, 1990
Docket89-2021
StatusPublished
Cited by22 cases

This text of 900 F.2d 1280 (Susan I. MEUSBERGER, Appellee, v. Charles M. PALMER, Director of the Iowa Department of Human Services, Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Susan I. MEUSBERGER, Appellee, v. Charles M. PALMER, Director of the Iowa Department of Human Services, Appellant, 900 F.2d 1280 (8th Cir. 1990).

Opinions

WOODS, District Judge.

The Iowa Department of Human Services (“IDHS”) appeals the order of the district court1 requiring IDHS to fund the plaintiff's pancreas transplant. The IDHS challenges the district court’s finding (1) that it was the IDHS policy to fund all nonexperimental transplant surgeries, and (2) that pancreas transplants are nonexperi-mental. We affirm.

I. BACKGROUND

The plaintiff, Susan Meusberger, has severe, or “brittle,” diabetes. In a non-diabetic, the pancreas secretes insulin into the body as needed to regulate blood sugar levels. Many diabetics artificially regulate blood sugar levels with injections of insulin, absorbed by the body at a predictable rate. However, in the case of brittle diabetics, such as the plaintiff, the absorption rate of administered insulin is unpredictable. Ms. Meusberger’s condition is made more unstable by a diabetic complication, autonomic neuropathy, which interferes with the normal absorption of food from her gastrointestinal tract. Because of this complication, the absorption rate of food is unpredictable, thus her need for insulin is unpredictable.

As a result of her brittle diabetes, Ms. Meusberger suffers multiple secondary complications including retinopathy (progressive damage to the retina, eventually resulting in blindness), peripheral neuropa-thy (loss of feeling in the extremities, often resulting in irreparable damage to the hands and feet), autonomic neuropathy (interference with the normal function of vital organs, such as the heart and kidneys) and nephropathy (kidney failure). Without the pancreas transplant, Ms. Meusberger, now thirty-one years of age, would face certain [1282]*1282blindness and kidney failure within the next few years, and a probable early death.2

The parties agree that Ms. Meusberger is entitled to Medicaid benefits and that she has applied to the IDHS for coverage of a pancreas transplant under Medicaid. The IDHS has denied the request for coverage, citing IDHS rules at 441 Iowa Admin. Code §§ 78.1(l)(f),3 78.1(20)4 and 78.3(10).5 These sections constitute Iowa’s required written policy concerning the funding of organ transplants.6 The IDHS contends that their policy was to fund only those organ transplants designated nonexperi-mental by Medicare.

The district court held that the intent of the written policy was to fund all nonexper-imental organ transplants, and that the reliance on Medicare’s designation of “nonex-perimental” was intended as an administrative convenience rather than an inalterable adherence.

Having determined that the IDHS policy was to fund all nonexperimental organ transplants, the district court went on to hold that pancreas transplants are not experimental, and are, thus, covered by the Iowa Medicaid plan.

II. DISCUSSION

Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., commonly called the Medicaid statute, provides for federal grants to enable states to provide medical care to persons whose income and resources are insufficient to meet the costs of necessary medical services. Participation by a state in the Medicaid program is optional, but in order for a state to receive federal funds, its approved plan must meet all requirements of Title XIX as well as the implementing regulations. 42 U.S.C. § 1396a.

States have some discretion in determining which medical services to cover under their Medicaid program. Other medical services, such as inpatient and outpatient hospital services, laboratory and X-ray services, skilled nursing facility services, and physician services must be provided. 42 U.S.C. § 1396d(a)(l)-(5). These required medical services must be provided whenever they are “medically necessary.” Ellis v. Patterson, 859 F.2d 52 (8th Cir.1988).

This court has held that state Medicaid plans need not fund organ transplants, even when they are “medically necessary.” Ellis, at 55. States may elect which, if any, organ transplants to cover. Id. However, once a state has adopted a policy to cover a category of organ transplants, it may not arbitrarily or unreasonably deny services to an otherwise eligible Medicaid recipient.

Ms. Meusberger’s contention is materially different from that of the plaintiff in Ellis. In that case, the parents of Brandy Ellis contended that the State of Arkansas was required to fund their baby’s liver transplant as a “necessary in-patient ser[1283]*1283vice.” See, Pinneke v. Preisser, 623 F.2d 546, 548 n. 2 (8th Cir.1980). The Court rejected the notion that organ transplants, even when medically necessary, are among those medical services states are required to provide.

In this case, the seminal question is not whether the State of Iowa must provide pancreas transplants to Medicaid recipients. That issue was decided in Ellis. Rather, the question is whether the district court erred in interpreting the IDHS policy.

There is ample evidence in the record to support the district court’s interpretation that the Iowa statutes and regulations refer to Medicare designation of “experimental” as a matter of administrative convenience and not as an absolute.

As an initial matter, Medicare has not designated pancreas transplants as either “experimental” or “nonexperimental.” The Medicare “Coverage Issues Manual” states in pertinent part: “Pancreas transplants of any type are considered investi-gational and are, therefore, not covered under Medicare.” [Emphasis added]. Testimony presented to the district court indicated that “investigational” procedures are those in which patients are asked to participate in follow-up studies. (J.App. 48) Iowa Medicaid rules require that all facilities performing heart and liver transplants, which are covered under Medicaid, collect and maintain data on recipients and have a “detailed plan for review and evaluation of recipient selection, preoperative, operative, postoperative and long-term management of the recipient.” 441 Iowa Admin.Code § 78.3(10)e. Thus, although heart and liver transplants are “investigational” in Iowa, they are not excluded from Medicaid coverage.

The IDHS written policy covering organ transplants became effective in July, 1987. A September, 1988, letter from the Commissioner of the IDHS to the plaintiff, rejecting her request for reimbursement for a pancreas transplant, states in pertinent part: “[T]he Department of Human Services remains confident in our policy to deny coverage for pancreas transplants as they are an experimental procedure.” (J.App. 218).

Nowhere in that letter does the Commissioner refer to reliance on Medicare designations. Medicare is never even mentioned in the letter.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Maxwell Kadel v. Dale Folwell
100 F.4th 122 (Fourth Circuit, 2024)
Susan Lankford v. Gary Sherman
451 F.3d 496 (Eighth Circuit, 2006)
Lankford v. Sherman
451 F.3d 496 (Eighth Circuit, 2006)
Jackson v. Millstone
801 A.2d 1034 (Court of Appeals of Maryland, 2002)
Smith v. Palmer
24 F. Supp. 2d 955 (N.D. Iowa, 1998)
Bliek v. Palmer
916 F. Supp. 1475 (N.D. Iowa, 1996)
Wahpeton Canvas Co. v. Bremer
893 F. Supp. 863 (N.D. Iowa, 1995)
Salgado v. Kirschner
878 P.2d 659 (Arizona Supreme Court, 1994)
Pittman v. Secretary
998 F.2d 887 (Eleventh Circuit, 1993)
Pereira v. Kozlowski
996 F.2d 723 (Fourth Circuit, 1993)
Pereira ex rel. Pereira v. Kozlowski
996 F.2d 723 (Fourth Circuit, 1993)
Miller Ex Rel. Miller v. Whitburn
816 F. Supp. 505 (W.D. Wisconsin, 1993)
Dexter v. Kirschner
984 F.2d 979 (Ninth Circuit, 1992)
Salgado v. Kirschner
836 P.2d 995 (Court of Appeals of Arizona, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
900 F.2d 1280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/susan-i-meusberger-appellee-v-charles-m-palmer-director-of-the-iowa-ca8-1990.