710 F.3d 394
6th Cir.2013Background
- Tennessee's TennCare program operated under a federal consent decree for 15 years with a sunset contingent on 80% adjusted periodic screening and ongoing compliance.
- District court conducted an 18-day evidentiary hearing and a detailed review of TennCare’s compliance with the decree and federal Medicaid law.
- Court found TennCare markedly improved its outreach, screening (physical, vision, hearing, dental), and diagnostic/treatment services, largely without private-rights enforcement issues.
- Court relied on monitoring tools—NCQA accreditation, HEDIS metrics, CAHPS scores, and an External Quality Review Organization (Qsource)—to assess performance.
- Court also examined the decree’s paragraphs for enforceability under §1983, vacating those based on provisions not privately enforceable, while leaving others intact.
- After extensive findings, the district court vacated the decree in full as TennCare met the sunset and federal-law compliance requirements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court properly vacated paragraphs under Rule 60(b)(5). | Plaintiffs contend law-of-the-case and basis issues require reversal. | TennCare argues paragraphs rested on non-privately enforceable provisions and could be vacated. | Yes; court did not abuse discretion vacating those paragraphs. |
| Whether paragraph 84's basis was correctly determined. | Argue Adoption Act basis; §1396a(a)(43) overlap renders improper. | District court correctly tied paragraph 84 to Adoption Act, not to §1396a(a)(43). | Yes; district court did not abuse its interpretation. |
| Whether paragraphs 78–83 on agency coordination were properly vacated. | Regulation §441.61(c) and its relation to privately enforceable provisions were misread. | Implementing regulation not privately enforceable; vacatur proper. | Yes; district court did not abuse discretion. |
| Whether the sunset-clause analysis correctly concluded current substantial compliance. | Argue continued enforcement necessary due to potential ongoing violations. | Court found durable, ongoing compliance and no ongoing violation requiring supervision. | Yes; decree vacated under the sunset clause. |
| Whether TennCare’s minor error in calculating the denominator was harmless. | Denominator error inflates compliance metrics, undermining sunset validity. | Error is technical; does not affect substantial rights or overall compliance. | Yes; error deemed harmless. |
Key Cases Cited
- Westside Mothers v. Olszewski, 454 F.3d 532 (6th Cir. 2006) (certain parts of Medicaid Act not privately enforceable under §1983)
- Rufo v. Inmates of Suffolk Cnty. Jail, 502 U.S. 367 (U.S. 1992) (change in law may justify vacating consent decree)
- Doe v. Briley, 562 F.3d 777 (6th Cir. 2009) (private enforceability of statutory rights in consent decrees)
- John B. v. Goetz, 626 F.3d 356 (6th Cir. 2010) (statutory basis of decree; guidance on vacatur and enforceability)
- Horne v. Flores, 557 U.S. 433 (U.S. 2009) (durable remedy; termination in institutional reform requires ongoing compliance)
- Gonzales v. Galvin, 151 F.3d 526 (6th Cir. 1998) (termination of consent decree; interplay with Horne controlling)
- Dowell v. Oklahoma City Public Schools, 498 U.S. 237 (U.S. 1991) (durable remedy framework for institutional reform)
- Sault Ste. Marie Tribe of Chippewa Indians v. Granholm, 475 F.3d 805 (6th Cir. 2007) (contract-like interpretation of consent decrees; de novo review of decree terms)
- Memisovski ex rel. Memisovski v. Maram, 2004 WL 1878332 (N.D. Ill. 2004) (district court counting method; not controlling here)
