Watson v. Weeks

436 F.3d 1152, 2006 WL 288147
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 7, 2006
Docket04-35704
StatusPublished
Cited by1 cases

This text of 436 F.3d 1152 (Watson v. Weeks) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watson v. Weeks, 436 F.3d 1152, 2006 WL 288147 (9th Cir. 2006).

Opinion

HUG, Circuit Judge:

Seven Medicaid-eligible Oregon residents and the Oregon Advocacy Center (collectively the “Plaintiffs”) appeal the district court’s order dismissing their action against Oregon state health officials, seeking declaratory and injunctive relief. Their appeal presents an issue of first impression for this circuit: whether certain provisions of the Medicaid Act, 42 U.S.C. §§ 1396a(a)(10) and 1396a(a)(17), create individual rights enforceable under 42 U.S.C. § 1983 (“section 1983”).

The seven individual plaintiffs, who are seniors and disabled individuals, had received home and community-based services as an alternative to Medicaid institutional nursing facility services. They lost their Medicaid eligibility, however, when the Oregon Department of Human Services (the “Department”) scaled back the state’s Medicaid program in the face of a budget crisis. Plaintiffs sued officials in the Department under section 1983 in federal district court. The individual plaintiffs alleged that they required the level of care that entitles them to nursing facility services under the Medicaid Act. They further alleged that the Department’s actions violated both section 1396a(a)(10), which requires states to provide nursing facility services to eligible individuals, and section 1396a(a)(17), which requires states to use reasonable standards in setting Medicaid eligibility.

The district court granted the Department’s motion to dismiss the complaint under Federal Rule of Civil Procedure (“FRCP”) 12(b)(6), concluding that the Medicaid Act provisions in question do not create individual rights enforceable through section 1983. In dismissing the *1155 case, the court also denied Plaintiffs leave to amend their complaint.

Plaintiffs appeal the dismissal of their complaint and the denial of leave to amend. We have jurisdiction under 28 U.S.C. § 1291, and we hold that section 1396a(a)(10) creates an individual right enforceable under section 1983. We also hold that section 1396a(a)(17) does not create such an individual right. We do not reach the question of the district court’s denial of leave to amend. The district court is thus affirmed in part, and reversed in part. We remand for further proceedings consistent with this opinion.

I

BACKGROUND

A. The Medicaid Framework

Medicaid is a cooperative Federal-State program with the “purpose of enabling each State, as far as practicable under the conditions in such State, to furnish (1) medical assistance on behalf of ... individuals, whose income and resources are insufficient to meet the costs of necessary-medical services.” 42 U.S.C. § 1396. States choosing to participate in the program, such as Oregon, must develop a medical assistance plan meeting the approval of the federal Secretary of Health and Human Services (the “Secretary”). See id. A participating state receives federal reimbursement for “medical assistance” that it renders under its approved plan. See id.

The “medical assistance” provided by a state plan must include certain minimum services to “all individuals” who are financially eligible. See 42 U.S.C. § 1396a(a)(10)(A) (identifying the seven subsections of 42 U.S.C. § 1396d(a) that describe the minimum services). Among the services that must be provided are “nursing facility services (other than services in an institution for mental diseases) for individuals 21 years of age or older.” 42 U.S.C. § 1396d(a)(4)(A). The Medicaid Act defines a “nursing facility” as an institution primarily engaged in providing skilled nursing care, rehabilitation services, or regular health-related care and services (above the level of room and board) available only in institutions. See 42 U.S.C. § 1396d(c) (referring to 42 U.S.C. § 1396r(a) for definition); 42 U.S.C. § 1396r(a)(l).

A state plan must also provide “reasonable standards ... for determining eligibility for and the extent of medical assistance under the plan,” 42 U.S.C. § 1396a(a)(17), and must include necessary safeguards to assure that eligibility for services is provided “in a manner consistent with simplicity of administration and the best interests of the recipients.” 42 U.S.C. § 1396a(a)(19).

A related provision of Medicaid is the Home and Community Based Services (“community-based services”) waiver program. A community-based services waiver permits a state plan to include as “medical assistance” certain home and community-based services rendered to individuals who otherwise would require nursing facility care that could be reimbursable under the state plan. See 42 U.S.C. § 1396n(c)(l). A waiver program must include a method for assessing whether possible service recipients need inpatient hospital services, nursing facility services, or services in an intermediate care facility for the mentally ill. 42 U.S.C. § 1396n(c)(2)(B). The implementing regulations for § 1396n(c)(l) provide that a state may terminate its waiver at any time upon notice to the recipients and Secretary. See 42 C.F.R. § 441.307. A waiver may also be modified at any time, subject to the Secretary’s approval. See 42 C.F.R. § 441.355.

*1156 B. Oregon’s Community-Based Services Waiver

Oregon initiated its community-based services waiver program in 1981.

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Related

Watson v. Weeks
436 F.3d 1152 (Ninth Circuit, 2006)

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Bluebook (online)
436 F.3d 1152, 2006 WL 288147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watson-v-weeks-ca9-2006.