Douglas v. Independent Living Center of Southern California, Inc.
132 S. Ct. 1204
| SCOTUS | 2012Background
- Medicaid is a cooperative federal‑state program requiring CMS approval of state plans and amendments to receive federal funds.
- California enacted 2008–2009 statutes reducing rates and capping county wage/benefit contributions for home care.
- California submitted plan amendments in 2008–2008 to implement reductions; CMS began review.
- Providers/beneficiaries filed suits claiming the plan amendments violated 42 U.S.C. § 1396a(a)(30)(A) and were pre‑empted by federal law.
- CMS initially disapproved the amendments in 2010, triggering ongoing agency reviews and court proceedings in the Ninth Circuit.
- CMS later approved several amendments in Oct. 2011, with limited retroactive rate reductions, changing the posture of the cases.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Supremacy Clause actions can enforce § 1396a(a)(30)(A) after CMS approval | Respondents can pursue private Supremacy Clause relief against California. | CMS approval resolves the question; Supremacy Clause action is not appropriate post‑approval. | Cases remanded; Court declines to decide private Supremacy Clause viability after agency action. |
Key Cases Cited
- Wilder v. Virginia Hospital Assn., 496 U.S. 498 (1990) (agency review and plan approval framework relevant to Medicaid)
- Independent Living Center of Southern Cal., Inc. v. Maxwell-Jolly, 572 F.3d 644 (9th Cir. 2009) (Supremacy Clause authority challenged in Medicaid context)
- Gonzaga Univ. v. Doe, 536 U.S. 273 (2002) (no private right of action absent statutory rights)
- Astra USA, Inc. v. Santa Clara County, 563 U.S. 110 (2011) (private rights and enforcement limits when statutes confer enforcement via contracts)
- National Cable & Telecommunications Assn. v. Brand X Internet Services, 545 U.S. 967 (2005) (standard deference to agency interpretations)
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984) (administrative deference when reviewing agency action)
