The State of Texas v. United States Department of Health and Human Services

CourtDistrict Court, W.D. Texas
DecidedApril 5, 2024
Docket7:23-cv-00022
StatusUnknown

This text of The State of Texas v. United States Department of Health and Human Services (The State of Texas v. United States Department of Health and Human Services) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The State of Texas v. United States Department of Health and Human Services, (W.D. Tex. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS MIDLAND/ODESSA DIVISION

THE STATE OF TEXAS, MAYO § PHARMACY, INC., § , § MO:23-CV-00022-DC § v. § § UNITED STATES DEPARTMENT § OF HEALTH AND HUMAN § SERVICES, XAVIER BECERRA, IN § HIS OFFICIAL CAPACITY AS § SECRETARY OF HEALTH AND § HUMAN SERVICES; AND § UNITED STATES DEPARTMENT § OF HEALTH AND HUMAN § SERVICES OFFICE FOR CIVIL § RIGHTS, § . §

MEMORANDUM OPINION Imagine two plots of land divided by an unfenced property line. One day, the owner of Plot A decides to fence off that property line, publishing his plans to do so in the local newspaper. Plot B’s owner sees the plans in the paper and discovers that the fence will be located five feet onto his property, thus effectively reducing Plot B’s size. So rightfully seeking to avoid that injury, Plot B’s owner sues to stop the fence’s construction. Despite being sued, Plot A’s owner tells the judge that Plot B’s owner would not be injured because the proposed fence runs along what Plot A’s owner believes is the legally correct property line. But the judge disagrees, ruling that the legal property line between the two plots is clearly delineated in the county records, and thus there is an imminent risk that Plot B’s owner would be injured. So appearing to take the judge’s ruling to heart, Plot A’s owner publicly republishes a revised plan with the fence located on the correct property line, stating that he seeks to give the owner of Plot B everything he wanted because it was never his intent for the fence to encroach on Plot B. Yet Plot A owner’s clear attempts to resolve the dispute by genuflecting to the judge’s

ruling are not enough for Plot B’s owner. Indeed, Plot B’s owner believes the risk of injury is still imminent because the owner of Plot A could hypothetically build the fence in the original, encroaching location. So is the argument that Plot B’s owner could still “hypothetically” be injured—despite the owner of Plot A’s public remorse and statements to the contrary—enough to keep the case going as a live dispute? If the above scenario were before this Court, the answer would be no.

BACKGROUND Section 1557 of the Affordable Care Act (“Section 1557”) and its implementing regulations1 prohibit discrimination in any health program or activity that receives Federal financial assistance on grounds prohibited under the following civil rights laws: (1) Title VI of the Civil Rights Act of 1964 (race, color, national origin),2 (2) Title IX of the Education Amendments of 1972 (sex, pregnancy, sexual orientation, and gender identity),3 (3) the Age Discrimination Act of 1975 (age),4 or (4) Section 504 of the Rehabilitation Act of 1973 (disability).5 The Department of Health and Human Services’ (“HHS”) Office for Civil Rights (“OCR”) enforces Section 1557’s non-discrimination proscriptions mainly through a

1 42 U.S.C. § 18116; 45 C.F.R. § 92.2 2 42 U.S.C. § 2000d et seq. 3 20 U.S.C. § 1681 et seq. 4 42 U.S.C. § 6101 et seq. 5 29 U.S.C. § 794. complaint-driven process.6 For example, if a pharmacy’s customer believes that the pharmacy’s actions violate civil rights law, that customer may file a complaint with the OCR.7 If that complaint is timely, the OCR would open an investigation, which would

include a review of the pharmacy’s “pertinent practices and policies” and the “circumstances under which the possible noncompliance occurred.”8 And based on that “investigation,” the OCR will conclude that no violation has occurred or, if one has occurred, resolve the matter “by informal means whenever possible.”9 On July 13, 2022, HHS issued a guidance document (“Pharmacy Guidance”) to remind United States retail pharmacies of their obligations under Section 1557.10 In short,

the Pharmacy Guidance reiterates that under Section 1557, pharmacies that receive federal financial assistance may not discriminate against pharmacy customers based on race, color, national origin, sex, age, or disability.11 And the OCR would provide “vigorous enforcement” against such discrimination.12 Approximately six months after the Pharmacy Guidance was issued, the state of Texas and Mayo Pharmacy, Inc. (“Plaintiffs”) sued HHS, the OCR, and HHS Secretary

Becerra in his official capacity (together, “Defendants”), alleging the Pharmacy Guidance required pharmacies to dispense abortion-inducing drugs as a condition of receiving federal

6 45 C.F.R. § 92.5. 7 Id. § 80.7(b). 8 Id. § 80.7(c). 9 Id. § 80.7(d)(1)–(2). 10 Guidance to Nation’s Retail Pharmacies: Obligations Under Fed. Civil Rights Laws to Ensure Access to Comprehensive Reproductive Health Care Services (July 13, 2022) (found at Doc. 1, Ex. 3) [hereinafter Pharmacy Guidance]. 11 Id. 12 Id. at 2. financial assistance like Medicare and Medicaid funds.13 Specifically, Texas claimed the Pharmacy Guidance sought to preempt its state laws prohibiting abortion, while Mayo claimed a requirement to dispense drugs for abortion purposes violated its sincerely held

religious beliefs. Defendants then moved to dismiss Plaintiffs’ claims, arguing that the Pharmacy Guidance required no such thing.14 This Court did not buy Defendants’ argument. In denying Defendants’ motion, the Court noted the Pharmacy Guidance’s “temporal and thematic relationship” with the current administration’s vociferous contempt of the Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization.15 For instance, a mere two weeks after Dobbs, the Biden

Administration issued an Executive Order, titled “Protecting Access to Reproductive Healthcare Services.”16 This Executive Order instructed HHS to “identify potential actions (A) to protect and expand access to abortion care, including medication abortion; and (B) to otherwise protect and expand access to the full range of reproductive healthcare services[.]”17And then three days later, HHS released the Pharmacy Guidance. So based on the suspicion that Defendants were “smurfing” the administration’s policy goal contrary to the Supreme

Court’s holding in Dobbs, the Court shot down Defendants’ motion. Almost three months after the Court denied Defendants’ motion to dismiss, HHS revised the Pharmacy Guidance (“Revised Guidance”) “to clarify that the guidance does not

13 Doc. 1. 14 Doc. 31 at 8. 15 142 S. Ct. 2228, 2279, 2284 (2022) (holding that “the Constitution does not confer a right to abortion” and “does not prohibit the citizens of each State from regulating or prohibiting abortion.”). 16 Protecting Access to Reproductive Healthcare Services, Exec. Order No. 14,076, 87 Fed. Reg. 42053, 42053 (July 8, 2022) 17 Id. (emphasis added). require pharmacies to fill prescriptions for medication for the purpose of abortion.”18 Defendants then moved for summary judgment, contending primarily that the Revised Guidance renders this case moot.19 Plaintiffs also moved for summary judgment, arguing

that the case is not moot, and thus the merits should be reached, because the Revised Guidance still requires them to dispense drugs for abortion purposes.20 The Court held an in-person oral argument on the Parties’ cross-motions on January 26, 2024, and the issues are ready to be resolved.

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