EERIEANNA GOOD and CAROL BEAL v. IOWA DEPARTMENT OF HUMAN SERVICES
No. 18-1158
IN THE SUPREME COURT OF IOWA
March 8, 2019
Arthur E. Gamble, Judge
The Iowa Department of Human Services appeals a district court decision striking down Iowa Administrative Code rule 441—78.1(4), which prohibits Medicaid coverage for gender-affirming surgery. AFFIRMED.
Thomas J. Miller, Attorney General, Matthew K. Gillespie and Anagha Dixit, Assistant Attorneys General, for appellant.
Rita Bettis Austen of ACLU of Iowa Foundation, Des Moines, John Knight of ACLU Foundation LGBT & HIV Project, Chicago, Illinois, and F. Thomas Hecht, Tina B. Solis, and Seth A. Horvath of Nixon Peabody LLP, Chicago, Illinois, for appellees.
Bob Rush of Rush & Nicholson, PLC, Cedar Rapids, and Steve Sanders of Maurer School of Law, Indiana University, Bloomington, Indiana, for amici curiae Iowa Scholars of Law, History, Bioethics, Gender, and Sexuality.
Paige Fiedler of Fiedler Law Firm, P.L.C., Johnston, Robert R. Stauffer and Lindsey A. Lusk of Jenner & Block LLP, Chicago, Illinois, and Devi M. Rao of Jenner & Block LLP, Washington, D.C., for amici curiae The American Medical Association, The Iowa Medical Society, The American College of Physicians, Mental Health America, National Association of Social Workers, and GLMA: Health Professionals Advancing LGBT Equality.
Sharon Malheiro and Katelynn T. McCollough of Davis Brown Law Firm, Des Moines, for amici curiae One Iowa, Individual Transgender Iowans, and Allies.
Joshua Matz and John C. Quinn of Kaplan Hecker & Fink, New York, New York, and Joseph C. Glazebrook, Des Moines, for amici curiae Lambda Legal Defense and Education Fund, Inc., National Center for Transgender Equality, Transgender American Veterans Association, Transcend Legal, Transgender Legal Defense and Education Fund, Transgender Allies Group, Transgender Resource Center of
Roxanne Barton Conlin of Roxanne Conlin & Associates, P.C., Des Moines, and Matt M. Fogelberg, and Paul E. Bateman Jr. of Sidley Austin LLP, Chicago, Illinois, for amici curiae National Health Law Program, National Women‘s Health Network, and Chicago Lawyers’ Committee for Civil Rights.
Katie Ervin Carlson of Timmer & Judkins, P.L.L.C., West Des Moines, and Lindsay Nako and Daniel J. Nesbit of Impact Fund, Berkeley, California, for amici curiae Impact Fund, et al.
CHRISTENSEN, Justice.
In 2007, the Iowa legislature amended
After exhausting intra-agency appeals, the appellees sought judicial review. The district court consolidated their cases and concluded the challenged portions of
I. Background Facts and Proceedings.
EerieAnna Good and Carol Beal are transgender women who have gender dysphoria. Gender dysphoria is a diagnostic category in the Diagnostic and Statistical Manual of Mental Disorders-V (DSM-V), codified as diagnostic code section 302.85, which “refers to the distress that may accompany the incongruence between one‘s experienced or expressed gender and one‘s assigned gender.” Am. Psychiatric Ass‘n, Diagnostic and Statistical Manual of Mental Disorders 451 (5th ed. 2013). The DSM-V provides the following diagnostic criteria for gender dysphoria in adults:
- A marked incongruence between one‘s experienced/ expressed gender and assigned gender, of at least 6 months duration, as manifested by at least two of the following:
- A marked incongruence between one‘s experienced/expressed gender and primary and/or secondary sex characteristics . . . .
- A strong desire to be rid of one‘s primary and/or secondary sex characteristics because of a marked incongruence
with one‘s experienced/expressed gender . . . . - A strong desire for the primary and/or secondary sex characteristics of the other gender.
- A strong desire to be of the other gender (or some alternative gender different from one‘s assigned gender).
- A strong desire to be treated as the other gender (or some alternative gender different from one‘s assigned gender).
- A strong conviction that one has the typical feelings and reactions of the other gender (or some alternative gender different from one‘s assigned gender).
- The condition is associated with clinically significant distress or impairment in social, occupational, or other important areas of functioning.
Id. at § 302.85, at 452–53.
At their administrative hearings, Good and Beal each entered into the record an affidavit in support of their appeal from Dr. Randi Ettner, Ph.D., a specialist and international expert in the field of gender dysphoria. Dr. Ettner concluded that the findings of the Iowa Foundation Report, the DHS Rulemaking Notice, and the DHS Rule Adoption Notice used to justify
According to Dr. Ettner, “[o]f those individuals who seek treatment for [g]ender [d]ysphoria, only a subset requires surgical intervention.” Good and Beal are among the subset of individuals seeking treatment for gender dysphoria whose physicians have concluded that gender-affirming surgery is necessary to treat their gender dysphoria.
Good is a twenty-nine-year-old transgender woman and Medicaid recipient who was officially diagnosed with gender dysphoria in 2013, though she began presenting herself as a female fulltime in 2010. Good began hormone therapy in 2014 and legally changed her name, birth certificate, driver‘s license, and social security card to align with her gender identity in 2016. Good‘s gender dysphoria intensifies her depression and anxiety. After her healthcare providers determined that surgery was medically necessary to treat her gender dysphoria, Good initiated the process to seek Medicaid coverage of her gender-affirming orchiectomy procedure from her MCO, AmeriHealth Caritas Iowa (AmeriHealth), in January 2017.
Beal is a forty-three-year-old transgender woman and Medicaid recipient who was officially diagnosed with gender dysphoria in 1989. Beal began presenting herself as a female fulltime at the age of ten and began hormone therapy in 1989. She legally changed her name, birth certificate, driver‘s license, and Social Security card to align with her gender identity in 2014. Beal experiences depression and anxiety due to her gender dysphoria. Beal‘s healthcare providers have concluded gender-affirming surgery is medically necessary to
Medicaid is a joint federal-state program established under Title XIX of the Social Security Act that helps states provide medical assistance to eligible low-income individuals. See Exceptional Persons, Inc. v. Iowa Dep‘t of Human Servs., 878 N.W.2d 247, 248‒49 (Iowa 2016); see generally
Iowa Medicaid generally provides coverage for medically necessary services and supplies provided by physicians subject to a few exclusions and limitations.
For the purposes of this program, cosmetic, reconstructive, or plastic surgery is surgery which can be expected primarily to improve physical appearance or which is performed primarily for psychological purposes or which restores form but which does not materially correct or materially improve the bodily functions. When a surgical procedure primarily restores bodily function, whether or not there is also a concomitant improvement in physical appearance, the surgical procedure does not fall within the provisions set forth in this subrule. Surgeries for the purpose of sex reassignment are not considered as restoring bodily function and are excluded from coverage.
. . . .
b. Cosmetic, reconstructive, or plastic surgery performed in connection with certain conditions is specifically excluded. These conditions are:
. . . .
(2) Procedures related to transsexualism, hermaphroditism, gender identity disorders, or body dysmorphic disorders.
(3) Cosmetic, reconstructive, or plastic surgery procedures performed primarily for psychological reasons or as a result of the aging process.
(4) Breast augmentation mammoplasty, surgical insertion of prosthetic testicles, penile implant procedures, and surgeries for the purpose of sex reassignment.
. . . .
d. Following is a partial list of cosmetic, reconstructive, or plastic surgery procedures which are not covered under the program. This list is for example purposes only and is not considered all-inclusive.
. . . .
(2) Cosmetic, reconstructive, or plastic surgical procedures which are justified primarily on the basis of a psychological or psychiatric need.
. . . .
(15) Sex reassignment.
Good filed her request for Medicaid preapproval from AmeriHealth to cover the expenses of her gender-affirming surgical procedure on January 27, 2017. AmeriHealth denied Good‘s request based on the
Good filed a petition for judicial review in district court on September 21, arguing
Beal filed her request for Medicaid preapproval from Amerigroup to cover the expenses of her gender-affirming surgical procedures on June 8. Amerigroup denied Beal‘s request based on the rule excluding surgical procedures for the purpose of sex reassignment. Beal initiated an internal appeal, which Amerigroup also denied. Beal subsequently appealed Amerigroup‘s denial of her preapproval request to cover the expenses of her gender-affirming surgery to the DHS. The ALJ preserved Good‘s constitutional challenges to the rule excluding coverage for gender affirming surgery and affirmed Amerigroup‘s decision, noting the rule prohibited coverage for Beal‘s requested procedures. Beal appealed the ALJ decision to the director of the DHS, who adopted the ALJ‘s decision and determined the DHS lacked jurisdiction to review Beal‘s constitutional challenge to the rule.
Beal filed a petition for judicial review in district court on December 15 presenting the same arguments as Good. The DHS also filed a motion to dismiss on Beal‘s case, claiming Beal failed to state a claim upon which relief can be granted. The district court denied this motion and consolidated Good‘s case with Beal‘s case on January 26, 2018.
Following briefing on the merits and a hearing, the district court reversed the DHS‘s decision to deny Good and Beal Medicaid coverage for their gender-affirming surgical procedures. The district court concluded the DHS is a public accommodation under the ICRA, and
II. Standard of Review.
”
III. Analysis.
The DHS raises several challenges to the district court‘s ruling on appeal. First, the DHS argues it is not a public accommodation under the ICRA. Second, the DHS maintains
A. Public Accommodations Under the ICRA.
It shall be an unfair or discriminatory practice for any . . . manager . . . of any public accommodation or any agent or employee thereof . . . [t]o refuse or deny any person because of . . .sex . . . [or] gender identity . . . in the furnishing of such accommodations, advantages, facilities, services, or privileges.
The ICRA does not define “government unit.” “If the legislature has not defined words of a statute, we may refer to prior decisions of this court and others, similar statutes, dictionary definitions, and common usage.” State v. Romer, 832 N.W.2d 169, 179 (Iowa 2013) (quoting Jack v. P & A Farms, Ltd., 822 N.W.2d 511, 516 (Iowa 2012)). Further, “[a]lthough the title of a statute cannot limit the plain meaning of the text, it can be considered in determining legislative intent.” State v. Tague, 676 N.W.2d 197, 201 (Iowa 2004) (quoting T & K Roofing Co. v. Iowa Dep‘t of Educ., 593 N.W.2d 159, 163 (Iowa 1999)). Here, our prior decisions, dictionary definitions, and the title of the statute prohibiting public accommodations from certain types of discrimination under the ICRA all support our conclusion that the DHS is a “government unit” within the ICRA‘s definition of a “public accommodation.”
Our prior cases discussing a “government unit” are limited, but our past use of the term supports our interpretation that public accommodations are not limited to a physical place, establishment, or facility. For example, in Warford v. Des Moines Metropolitan Transit Authority, 381 N.W.2d 622, 624 (Iowa 1986), we noted Iowa‘s statute governing tort liability of governmental subdivisions “anticipates that a ‘municipality’ will be some unit of local government.” Further, the dictionary definitions of “unit” reinforce our holding that the DHS is a “government unit” within the ICRA‘s definition of a “public accommodation” when it issues benefits determinations concerning Medicaid. Though the dictionary has multiple definitions for the word “unit,” the most applicable definition of “unit” defines it as “a single thing or person or group that is a constituent and isolable member of some more inclusive whole.” Unit, Webster‘s Third New International Dictionary (unabr. ed. 2002). This definition aligns with the Black‘s Law Dictionary definition of “governmental unit” as “[a] subdivision, agency, department . . . or other unity of government of a country or state” because the DHS is a government agency. Governmental Unit, Black‘s Law Dictionary (10th ed. 2014) (emphasis added).
Additionally,
The title of the statute Good and Beal rest their ICRA claims on—“Unfair practices—accommodations or services“—also informs our determination that the legislature intended to include the DHS as a “public accommodation” under the ICRA. See
Finally, while the ICRA does define “covered multifamily” as “[a] building consisting of four or more dwelling units if the building has one or more elevators” or “the ground floor units of a building consisting of four or more dwelling units,” this usage of “unit” does not conflict with our interpretation of it in section 216.7 as the DHS claims.
B. The ICRA‘s Prohibition on Gender Discrimination.
The DHS maintains
In 2007, the Iowa legislature amended the ICRA to add “gender identity” to the list of protected groups. See
The record does not support the DHS‘s position that
Further, the history behind the rule supports our holding that the rule‘s express bar on Medicaid coverage for gender-affirming surgical procedures discriminates against transgender Medicaid recipients in Iowa under the ICRA. Nearly forty years ago, the United States Court of Appeals for the Eighth Circuit ruled in Pinneke v. Preisser that it was improper for the Iowa DHS to informally characterize sex reassignment surgery as “cosmetic surgery” in its denial of sex reassignment surgery. 623 F.2d 546, 548 n.2 (8th Cir. 1980). Prior to Pinneke, the DHS had an unwritten policy of excluding sex reassignment surgeries from Medicaid coverage based on Medicaid‘s coverage limitations on “cosmetic surgery” and “mental diseases.” Id. at 548 n.2, 549–50. After the Eighth Circuit rejected this informal policy, the DHS amended the rule to clarify that the rule excluded Medicaid coverage for “sex reassignment procedures” and “gender identity disorders.”
C. Doctrine of Constitutional Avoidance.
Given our holding that
IV. Conclusion.
For the aforementioned reasons, we affirm the district court judgment.
AFFIRMED.
All justices concur except McDonald, J., who takes no part.
