Texas Health and Human Services Commission v. Linda Puglisi

Court of Appeals of Texas·Decided August 19, 2015·No. 03-15-00226-CV·Published

Opinion

ACCEPTED

03-15-00226-CV

6570038

THIRD COURT OF APPEALS

AUSTIN, TEXAS

8/19/2015 4:26:24 PM

JEFFREY D. KYLE

CLERK

No. 03-15-00226-CV

FILED IN

IN THE 3rd COURT OF APPEALS AUSTIN, TEXAS

THIRD COURT OF APPEALS 8/19/2015 4:26:24 PM AUSTIN, TEXAS JEFFREY D. KYLE _________________________________ Clerk

TEXAS HEALTH AND HUMAN SERVICES COMMISSION, Appellant,

v.

LINDA PUGLISI,

Appellee.

On Appeal From

The 53rd Judicial District Court of Travis County, Texas Trial Court Case No. D-1-GN-14-000381 The Honorable Judge Gisela D. Trianna

APPELLEE’S SUR-REPLY

MAUREEN O’CONNELL

Texas Bar No. 00795949

SOUTHERN DISABILITY LAW CENTER 1307 Payne Avenue

Austin, Texas 78757

T: 512.458.5800

F: 512.458.5850

moconnell458@gmail.com

Attorney for Appellee

TABLE OF CONTENTS

TABLE OF CONTENTS ............................................................................................i TABLE OF AUTHORITIES .................................................................................... ii ARGUMENT ............................................................................................................. 1

A. HHSC Identifies No Credible Authority to Support its Notion of “Covered DME” ....................................................................................... 1

B. Linda Puglisi’s Medical Need for the Recommended Wheelchair is not Diminished by the Severity of her Disability ....................................................................................................... 3

C. State Law Governing the Order of Payment for Dually-

Eligible Beneficiaries Has no Bearing on this Case ..................................... 4

D. HHSC’s Hearing Decision is Unsupported by Substantial Evidence ........................................................................................................ 6

E. Neither Detgen nor the DeSario Letter Supports HHSC’s Hearing Decision in this Case ....................................................................... 8

F. HHSC Denied Linda Puglisi’s Due Process Rights.................................... 10 PRAYER .................................................................................................................. 11 CERTIFICATE OF COMPLIANCE ....................................................................... 12 CERTIFICATE OF SERVICE ................................................................................ 12

i

TABLE OF AUTHORITIES

CASES

DeSario v. Thomas, 139 F.3d 80 (2d Cir. 1998) ............................................................................... 2, 8

Detgen v. Janek, 945 F. Supp. 2d 746 (N.D. Tex. 2013) ............................................................. 8, 9

Lankford v. Sherman, 451 F.3d 496 (8th Cir. 2006) ............................................................................ 3, 9

Slekis v. Thomas, 525 U.S. 1098 (1999) ............................................................................................ 2

REGULATIONS 1 TEX. ADMIN. CODE § 354.1039(a)(4)(D) ................................................................ 9 1 TEX. ADMIN. CODE § 354.1041 ............................................................................... 4 42 C.F.R. § 440.240(b) .............................................................................................. 3 STATUTES 42 U.S.C. § 1396a(a)(10)(B)...................................................................................... 3 TEX. HUM. RES. CODE § 32.050(b) ............................................................................ 5 TEX. HUM. RES. CODE § 32.0424 ............................................................................... 4 TEX. HUM. RES. CODE § 32.0425 ........................................................................... 3, 8 OTHER AUTHORITIES Texas Medicaid Provider’s Procedure Manual §2.3.1.2............................................ 5 Texas Medicaid Provider’s Procedure Manual §2.3.1.3............................................ 5

ii

No. 03-15-00226-CV

IN THE

THIRD COURT OF APPEALS

AUSTIN, TEXAS

TEXAS HEALTH AND HUMAN SERVICES COMMISSION, Appellant,

v.

LINDA PUGLISI,

Appellee.

On Appeal From

The 53rd Judicial District Court of Travis County, Texas Trial Court Case No. D-1-GN-14-000381 The Honorable Judge Gisela D. Trianna

APPELLEE’S SUR-REPLY

TO THE HONORABLE COURT OF APPEAL:

Appellee, Linda Puglisi, respectfully files this Sur-Reply to correct several factual and legal inaccuracies contained within Appellant’s Reply Brief.

ARGUMENT

A. HHSC Identifies No Credible Authority to Support its Notion of “Covered DME.”

The Texas Health and Human Services Commission (HHSC) acknowledges that “the power wheelchair, the integrated standing feature, and the power seat

systems are all defined as DME.” Appellant’s Reply Brief, p. 2. HHSC also acknowledges that CMS advised the agency in May 2013 that items of medical equipment meeting the state’s definition of durable medical equipment (DME) are covered and reimbursable through the Medicaid home health benefit. Appellant’s Brief, p. 30; Appellee's Brief, App.1. Nonetheless, HHSC claims that an integrated standing feature is not covered by Medicaid because it does not meet the state’s definition of “covered DME.” Appellant’s Reply Brief, p.2. Notably absent from this argument is any definition of the term “covered DME,” any ascertainable standard for distinguishing “covered DME” from other DME, or any legal support for the distinction that HHSC now attempts to make. While HHSC claims the process for defining “covered DME” is described in its initial brief, Appellant’s Reply Brief, p.2., no such process or definitions are identified therein. Moreover, the only legal support offered by HHSC for this distinction is the Second Circuit’s decision in DeSario v. Thomas. 139 F.3d 80 (2d Cir. 1996), cert. granted, decision vacated and remanded sub nom, Slekis v. Thomas, 525 U.S. 1098 (1999). However, this decision was vacated by the U.S. Supreme Court based upon federal policy concerning DME coverage and this guidance provides no support for the distinction HHSC attempts to make. Appellant’s Brief, App. 6.

Contrary to HHSC’s contention, there is nothing “misleading” about Linda Puglisi’s position that the test for Medicaid coverage of an integrated standing

feature is whether it meets the state’s definition of DME. Dozens of judicial decisions and CMS policy guidance all establish the accuracy of this test for DME coverage. Appellee’s Brief, pp. 35-44. Nor is there any question that the Texas Legislature included complex or specialized wheelchair components within the scope of DME coverage. TEX. HUM. RES. CODE § 32.0425. Because this component meets HHSC’s definition of DME, as well as state law defining custom wheelchairs, the trial court correctly reversed HHSC’s erroneous determination that the recommended standing feature is not covered by Medicaid. HHSC’s argument to the contrary is wrong.

B. Linda Puglisi’s Medical Need for the Recommended Wheelchair is not Diminished by the Severity of her Disability.

HHSC tries to make much of the fact that Linda requires assistance from caregivers to perform certain activities of daily living (ADLs) due to her spinal cord injury.1 However, HHSC cannot lawfully deny Linda’s request for a standing wheelchair based upon the severity of her disability. 42 U.S.C. § 1396a(a)(10)(B); 42 C.F.R. § 440.240(b); See Lankford v. Sherman, 451 F.3d 496 (8th Cir. 2006) (comparability requirement violated when state covers items of DME for certain individuals with disabilities but not for others.) In fact, HHSC’s administrative decisions specifically note that Linda was able to “maneuver and operate” the

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Related

Desario v. Thomas
139 F.3d 80 (Second Circuit, 1998)
Detgen ex rel. Detgen v. Janek
945 F. Supp. 2d 746 (N.D. Texas, 2013)
Slekis v. Thomas
525 U.S. 1098 (Supreme Court, 1999)