In this challenge to the Indiana Family and Social Services Administration’s (FSSA) automated system of processing claims for Medicaid, Food Stamps, and Temporary Assistance to Needy Families (TANF) benefits, we reverse the judgment of the trial court and hold that the FSSA’s denial notices are insufficiently explanatory but that the FSSA may deny an application for Food Stamp benefits when the applicant fails to cooperate in the eligibility determination process. We affirm in part the trial court’s grant of Perdue’s motion for summary judgment and hold that Sheila Perdue is entitled to reasonable accommodations in applying for benefits but that this does not necessarily require providing a caseworker or case management services.
The plaintiffs brought this class action complaint seeking declaratory and injunc-tive relief alleging violations of their feder
In the trial court, the plaintiffs moved for summary judgment as to all three claims. The State filed a response requesting that the trial court deny summary judgment to the plaintiffs and instead enter summary judgment in favor of the State as to all three counts in accordance with Indiana Trial Rule 56(B).
6
The trial court denied the plaintiffs’ motion as to Class A and Subclass A finding that due process was satisfied by the FSSA’s “mul-ti-step process for eligibility determination” and entered summary judgment for
The parties do not dispute the underlying facts of this case, which are summarized herein. The FSSA is charged with, among other things, administering the Medicaid, Food Stamp, and TANF programs for the State of Indiana. Each of these programs provide welfare benefits to individuals and families in need of financial assistance in Indiana. To be deemed eligible for a particular program, an individual must be certified as eligible by the FSSA and recertified either annually or semiannually depending on the particular program. The processes for initial certification and recertification are virtually identical, though recertification generally requires less information from the applicant.
The first step in the certification process is an interview between an FSSA caseworker and an applicant, which is scheduled by the FSSA’s computer system. The interview is conducted either over the telephone or in-person, depending on the county where the applicant resides. During the interview, the caseworker and the applicant explore potential areas of eligibility for particular programs and discuss the types of information and verification documents necessary to establish eligibility. The applicant then receives State Form 2032 entitled “Pending Verifications for Applicants/Recipients” specifying the particular documentation that is required by the agency to establish eligibility.
7
Form 2032 lists several categories of information (e.g., “Age, Citizenship, Immigration Status”; “Relationship/Identity”; “Bank Accounts/Financial Holdings”) for which the FSSA might request documentation. Each category provides examples of the types of documents that an applicant can submit as verification of the re
If the applicant fails to submit all of the necessary documentation within the designated time period, the application for benefits is denied or, in the case of recertification, the applicant’s benefits are discontinued. 8 Once such a determination has been made, the FSSA sends the applicant a notice of adverse action informing the applicant of the agency’s decision. The notice contains the name of the applicant, the program name for which benefits were sought, the date of the application, and the code(s) with the corresponding standardized explanation of the reason(s) for the adverse action (“reason codes”) (e.g., “Failure to cooperate in verifying income”; “Failure to cooperate in verifying the value of resources”). The notice does not provide any additional explanation of the reasons for the denial. At the top of the notice is a toll-free 1-800 telephone number and the mailing address for the FSSA.
We review an appeal of a trial court’s ruling on a motion for summary judgment using the same standard applicable to the trial court.
Wilson v. Isaacs,
1. Due Process and Adverse Action Notices
The plaintiffs in Class A and Sub-class A argue that the notices used by the FSSA to inform class member-applicants that they have been denied Medicaid, Food Stamp, or TANF program benefits violate their rights under the Due Process Clause of the Fourteenth Amendment to the United States Constitution and Title 42, Section 431.205(d) of the Code of Federal Regulations pertaining to Medicaid. They argue that the reason codes fail to adequately explain the agency’s reasons for denying benefits. Specifically, they challenge six reason codes:
• Failure to cooperate in establishing eligibility (Code 309) 9
• Failure to cooperate in verifying income (Code 315)
• Failure to cooperate in verifying the value of resources (Code 484)
• Failure to verify Indiana residency (Code 574)
• Failure to cooperate in verifying assistance group composition (Code 587)
• Failure to submit medical information necessary to establish eligibility (Code 595)
Appellants’ Br. at 12; Plaintiffs’ Memorandum of Law in Support of Motion for Summary Judgment, Appellees’ App’x at 364-65. The plaintiffs contend that due process requires “notice specifying which specific document or documents [an applicant] is alleged to have failed to provide” so that individuals can make informed decisions about whether to appeal an adverse determination. Appellants’ Br. at 31. We agree that due process requires a more detailed explanation of the reasons underlying an adverse determination.
The Due Process Clause of the Fourteenth Amendment declares that no State shall “deprive any person of life, liberty, or property, without due process of law.” U.S. Const, amend. XIV, § 1. Due process requires a two-part inquiry: “The first inquiry in every due process challenge is whether the plaintiff has been deprived of a protected interest in ‘property or ‘liberty.’ Only after finding the deprivation of a protected interest do we look to see if the State’s procedures comport with due process.”
Am. Mfrs. Mut. Ins. Co. v. Sullivan,
Both parties acknowledge that the entitlement benefits at issue in this case (Medicaid, Food Stamp, TANF) are properly characterized as “property” interests within the meaning of the Due Process Clause. Appellants’ Br. at 24; Appellees’ Br. at 16. We agree. There is no question that these entitlement benefits are “property” entitled to the full panoply of due process protections.
See Atkins v. Parker,
Turning next to the question of what process is due, the fundamental requirement of procedural due process is the opportunity to be heard at a meaningful time and in a meaningful manner.
Goldberg,
Here, the plaintiffs challenge the denial of their benefits on grounds that they have failed to cooperate in the certification process or failed to submit certain required information. Neither the plaintiffs nor the State contend that the deprivations (i.e., the denials of benefits) were in any way inadvertent or accidental. Instead, the plaintiffs allege that at least some of these deprivations were intentional but based on erroneous information. As such, Atkins’s “inadvertent error” exception does not apply to the notices at issue in this case because they were not accidental. We must, therefore, continue our analysis under the more strenuous notice requirement of Goldberg.
In a trio of cases, the Seventh Circuit defined the contours of
Goldberg’s
adequate notice requirement.
See Vargas v. Trainor,
One year later, in
Banks,
the Seventh Circuit elaborated more precisely the due process requirement, first articulated in
Vargas,
to inform applicants of the reasons for an adverse determination.
Banks
involved a reduction in benefits to existing recipients precipitated by a change to the method by which benefits were calculated.
The Seventh Circuit reaffirmed
Vargas
and
Banks
in
Dilda,
holding that due process requires more than a statement of the “ultimate reason” for the adverse state
We are persuaded that the Seventh Circuit’s approach should be applied in this case. Providing affected individuals with notice explaining in detail the reasons underlying the state’s adverse decision empowers individuals to protect their own interests and complements the state’s efforts to achieve accuracy. “The touchstone of due process is protection of the individual against arbitrary action by government.”
Wolff v. McDonnell,
With these principles in mind, we now turn to the actual notices at issue in this case. The brief explanations contained in the reason codes employed by the State fail to provide any insight into the factual bases for the State’s adverse benefit determinations. The reason codes do provide
some
information to applicants in that the codes offer, in brief and general terms, the intermediate conclusions necessitating a denial. Yet, these are merely the “ultimate reasons” for the denial. Like the notices at issue in
Dilda,
Ortiz v. Eichler
is instructive here.
At a minimum, due process requires the agency to explain, in terms comprehensible to the claimant, exactly what the agency proposes to do and why the agency is taking this action. If [the state] finds that a claimant has not performed some action that the regulations require, the notice must explain what the claimant was required to do and how his or her actions failed to meet this standard.
Id. at 1061-62. There is little difference between the notices struck down in Ortiz and the language of the reason codes at issue here. Neither “explain what the claimant was required by the regulation to do and how his or her actions failed to meet this standard.” Id. Instead, each provides the applicant only with the predicate conclusions necessitating a denial of benefits. Due process requires that the notice provide the individualized reasons underlying this predicate conclusion. 16
The State responds that the reason codes provided in the adverse action notices are only half of the picture. They argue that the notice to applicants should
The State primarily relies on
Rosen v. Goetz,
Rosen
contemplates only a situation where
both
notices were provided
after
an adverse determination is made by the agency. See
id. Rosen
does not provide any guidance as to the permissibility of providing full notiee in multiple correspondences where, like the State argues here, one portion of the notice
precedes
the making of the adverse determination. Such amalgamated notice was rejected by the Alaska Supreme Court in
Baker v. State, Department of Health and Social Services,
where the Alaska Department of Health and Human Services argued that adequate notice, for purposes of due pro
We therefore hold, as a matter of law, that the notices used by the FSSA to inform individuals that their applications for Medicaid, Food Stamp, or TANF benefits have been denied do not satisfy the requirements of due process. Accordingly, the Class A and Sub-class A plaintiffs were entitled to summary judgment on this issue, and the State’s motion for summary judgment should have been denied.
2. Food Stamp Law
On cross-appeal, the State appeals the trial court’s order enjoining the FSSA from “terminating, denying, or discontinuing the Food Stamp applications or benefits of the members of Class C based on an alleged ‘failure to cooperate’ with the agency.”
19
Findings of Fact, Conclusions of Law, and Summary Judgment, Appellants’ App’x at 37-38. The trial court held that the State could only deny an application for Food Stamp benefits on a finding that the applicant had “refused to cooperate.”
See id.
Before the trial court, the Class C plaintiffs’ only claim was that the State had improperly denied them Food Stamp benefits for failing to cooperate in the eligibility determination process because such a basis for denial is contrary to federal law. The plaintiffs made no claim that, even if “failure to cooperate” were a proper basis for denial, the State’s “failure to cooperate” determination did not corn-
Federal law states that “no household shall be eligible to participate in the [Food Stamp] program if it refuses to cooperate in providing information to the State agency that is necessary for making a determination of eligibility or for completing any subsequent review of its eligibility.” 21 7 U.S.C. § 2015(c) (emphasis added). It is simply not accurate, as the plaintiffs assert, that “federal law is explicit” that Food Stamp applications may only be denied where a household refuses to cooperate. Appellants’ Opp’n to Trans. Br. at 11 (referring to 7 U.S.C. § 2015(c)). Section 2015(c) merely codifies the rather commonsense notion that a household is ineligible for Food Stamp benefits if it refuses to cooperate. Section 2015(c) does not attempt to comprehensively announce every basis on which a state could deny a household benefits. See id. Even so, had Congress intended to so limit the basis for denial, it could have done so easily. Congress could have said, for example, “A household shall be denied benefits only if it refuses to cooperate.” Instead, Section 2015(c) employs a straightforward conditional statement to exclude anyone who refuses to cooperate from eligibility for the Food Stamp program while leaving open other possible bases for disqualification. See id.
The Food Stamp program’s implementing regulations contemplate both refusal and failure to cooperate as a basis of denial. 22 Section 273.2(d)(1) of the Food Stamp regulations provides:
If the household refuses to cooperate with the State agency in completing [the eligibility] process, the application shall be denied at the time of refusal. For a determination of refusal to be made, the household must be able to cooperate, but clearly demonstrate that it will not take actions that it can take and that are required to complete the application process. For example, to be denied for refusal to cooperate, a household must refuse to be interviewed not merely failing [sic] to appear for the interview. If there is any question as to whether the household has merely failed to cooperate, as opposed to refused to cooperate, the household shall not be denied, and the agency shall provide assistance required by paragraph (c)(5) of this section.
Our understanding of Section 273.2(d)(1) is guided by Section 273.2(h) which addresses delays in eligibility determinations caused by the state or the household. 23 Id. § 273.1(h). Section 273.2(h)(2)(i) provides: “If by the 30th day [following the date an application is filed] the State agency cannot take any further action on the application due to the fault of the household, the household shall lose its entitlement to benefits for the month of application.” Id. § 273.1(h)(2)© (emphasis added). A delay is considered the “fault of the household if the household has failed to complete the application process even though the State agency has taken all the action it is required to take to assist the household.” Id. § 273.1(h)(1)® (emphasis added). “The State agency has the option of sending the household either a notice of denial or a notice of pending status on the 30th day.” Id. § 273.1(h)(2)(i)(A) (emphasis added). Thus, where the applicant-household “fail[s] to complete the application process” (i.e., fails to cooperate) the state has the “option” of either denying the application or allowing the application to remain pending, with notice to the household accordingly. Id. This interpretation is buttressed by Section 273.10(g)(1) (ii), which expressly acknowledges the power of the state agency to “elect[ ] to use a notice of denial when a delay [is] caused by the household’s failure to take action to complete the application process [ (i.e., fails to cooperate) ].” Id. § 273.10(g)(1)(h) (emphasis added). The interpretation urged by the plaintiffs’ would ignore these provisions altogether. 24
For these reasons, we hold that federal law permits the FSSA to deny benefits to applicant’s who fail to cooperate in the eligibility determination process. We therefore reverse the trial court’s grant of summary judgment to the plaintiffs on this issue. 25
The State also challenges the trial court’s determination that the FSSA violated Sheila Perdue’s rights under the ADA and the RA. In seeking summary judgment, Perdue challenged the FSSA’s administrative policy decision not to assign specific case-workers to applicants to help them navigate the application and recertifi-cation processes. Perdue alleges that this policy disproportionately impacts disabled individuals and constitutes a failure to accommodate her disability in violation of Title II of the ADA (42 U.S.C. §§ 12131-12165) and Section 794 of the RA. The State contends, however, that Perdue has failed to designate sufficient evidence to support summary judgment. Specifically, the State makes three arguments: (1) Per-due failed to provide evidence establishing that she is “deaf or that her disability was known to the agency”; (2) Perdue failed to designate evidence establishing that “but for her disability, she would have received the benefit being sought”; and (3) Perdue “did not designate any evidence that established that the [FSSA] intentionally discriminated against Perdue, or refused to provide a reasonable modification to Per-due, or that the rule in question had a disproportionate impact on Perdue as a disabled person.” Appellees’ Cross-Appeal Br. at 36, 38 (emphasis omitted). We agree with Perdue that the FSSA was required to reasonably accommodate her disability under the ADA and RA.
Perdue alleges the following facts in her verified complaint, which she designated as evidence in her summary judgment motion: Perdue had been receiving Food Stamp and Medicaid for the Disabled benefits for three or four years. In December 2007, the FSSA notified her that she must be recertified for these programs in order to continue receiving benefits. As part of the recertification process, she was required to participate in a telephonic interview. Perdue timely appeared for the interview. Because she was having difficulty hearing the interviewer over the telephone, she asked the interviewer if she could schedule an in-person interview. The interviewer told her that she could not. Perdue then gathered her paperwork and traveled to a nearby FSSA Help Center where she requested assistance completing her recertification forms. None was provided. Perdue then completed the forms herself to the best of her ability and submitted them. The State has offered no competing facts.
Title II of the ADA prohibits discrimination against the disabled by “public services.” 42 U.S.C. §§ 12131-12165. Section 12132 of the ADA mandates that “no qualified individual with a disability shall, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity.”
Id.
§ 12132. ADA regulations require a public entity to “make reasonable modifications in policies, practices, or procedures when the modifications are necessary to avoid discrimination on the basis of disability.” 28 C.F.R. § 35.130(b)(7). Such modifications are required “unless the public entity can demonstrate that making the modifications would fundamentally alter the nature of the service, program, or activity.”
Id.
Similarly, Section 794 of the RA provides: “No otherwise qualified individual with a disability ... shall, solely by reason of her or his disability, be excluded from the participation in, be denied the
As outlined in the preceding paragraph, to sustain a claim under either the ADA or the RA, Perdue must demonstrate that (1) she is a “qualified individual with a disability” (2) who was excluded from or denied the benefits of the services, programs, or activities of, or otherwise subjected to discrimination (3) by a public entity (4) by reason of her disability. 42 U.S.C. § 12132; 29 U.S.C. § 794(a). 26 The State does not dispute, nor could it, that the FSSA is a “public entity.” See 42 U.S.C. § 12131 (1)(A), (B) (A “public entity” is “any State or local government” or “any department, agency, special purpose district, or other instrumentality of a State or local government”). Nor does the State dispute that Perdue was denied Food Stamp and Medicaid benefits by the FSSA. Instead, the State challenges Per-due’s status as a “qualified individual with a disability’ and that Perdue was excluded “by reason of’ her disability.
As an initial matter, based on the facts presented, there is no issue of material fact that would support the State’s argument that Perdue was denied benefits “by reason of’ her disability. While there doesn’t appear to be any evidence of intentional discrimination, the FSSA clearly did not provide any accommodations to Perdue to assist her in applying for benefits, and this failure to accommodate disproportionately impacted this plaintiff as a disabled person. The fact that she was unable to participate in the telephone interview alone places a heavier burden on the disabled.
Lastly, there is no issue of material fact as to whether Perdue is a “qualified individual with a disability.” Under the ADA, a “qualified individual with a disability” is “an individual with a disability who, with or without reasonable modifications to rules, policies, or practices, ... meets the essential eligibility requirements for the receipt of services or the participation in programs or activities provided by a public entity.”
Id.
§ 12131(2). This determination is inextricably linked with the determination of whether the denial, exclusion, or discrimination was “by reason of such disability.”
Alexander v. Choate,
The parties disagree about the precise benefit for which Perdue must be “otherwise qualified.” On the one hand, a plaintiff “must show that, ‘but for’ [her] disability, [she] would have received the ultimate benefit being sought” in order to maintain a claim under the ADA or RA.
Wis. Comm. Servs., Inc. v. City of Milwaukee,
In
Choate,
the Supreme Court admonishes us that we should not define the benefit — for which a disabled individual must show they are “otherwise qualified” — in a manner that “effectively denies otherwise qualified handicapped individuals the meaningful access to which they are entitled.... ”
Having concluded that the FSSA violated Perdue’s rights under the ADA and RA, the trial court ordered the FSSA to provide her with a “caseworker or case management services.” Findings of Fact, Conclusions of Law, and Summary Judgment, Appellants’ App’x at 38. The trial court’s order was premised on the Second Circuit’s conclusion in
Henrietta D. v. Bloomberg,
that the case management system utilized by New York City in that case represented a reasonable accommodation.
Id.
at 36 (citing
Conclusion
Summary judgments in favor of the State as to Class A and Sub-class A and in favor of the plaintiffs as to Class C are reversed, and summary judgment in favor of Sheila Perdue is affirmed in part. With respect to Class A and Sub-class A, we grant the plaintiffs’ motion for summary judgment and hold that the notices used by the FSSA to inform applicants that
Notes
. For simplicity, "applicant(s)” is used to refer to both first-time applicants seeking initial certification of eligibility and current benefits recipients seeking recertification of eligibility. Adverse determinations are generally termed "denials” for new applicants and are termed "discontinuations” for current beneficiaries. The processes for certification and recertification are described in detail elsewhere in the opinion.
. Specifically, the plaintiffs claim that the FSSA has violated Title 42, Section 431.205(d) of the Code of Federal Regulations, which pertains to Medicaid. Appellants' Br. at 25 n. 11. Section 431.205(d), however, mandates only that the Medicaid hearing procedures comply with "the due process standards set forth by
Goldberg v. Kelly,
. The plaintiffs argue that an adverse eligibility determination based on an applicant’s "failure to cooperate” contravenes the requirements of Title 7, Section 2015(c) of the United States Code and Title 7, Section 273.2(d)(1) of the Code of Federal Regulations.
. 29 U.S.C. § 794 is commonly referred to as Section 504 of the Rehabilitation Act of 1973, Pub.L. No. 93-112, 87 Stat. 355.
. Indiana Trial Rule 56(B) provides, in relevant part: “When any party has moved for summary judgment, the court may grant summary judgment for any other party upon the issues raised by the motion although no motion for summary judgment is filed by such party.”
. It is unclear from the designated materials whether Form 2032 is given to the applicant at the interview, if it is conducted in-person, or sent via the mail subsequently.
. For simplicity, both denials and discontinuances of benefits are referred to collectively as "denials.”
. The State notes that the FSSA has discontinued the use of this particular reason code. Nonetheless, we agree with the plaintiffs that this fact is not relevant to the disposition of this issue for two reasons: First, as the plaintiffs argue, the code has potentially served as the basis for termination in some of the class-
. The State urges us to apply
Mullane v. Central Hanover Bank & Trust Co.,
339 U.S.
. Apparently, the simultaneous occurrence of the statutory change and the miscalculation was coincidental and not causally connected.
Atkins,
. The Seventh Circuit’s approach has been followed by several other jurisdictions addressing the adequacy of notices in similar contexts.
See, e.g., Kapps v. Wing,
404 F.3
.
Goldberg
suggests that one of the primary functions of an administrative hearing is the development of a complete factual record and a comprehensive opinion explaining the agency’s action to facilitate judicial review.
See
. The Due Process Clause requires a "fair hearing."
Goldberg,
. In affirming the District Court, the Third Circuit explicitly approved the District Court’s analysis regarding the due process requirements for adequate notice.
. In determining the "specific dictates of due process,” we must weigh (1) the private interest, (2) the risk of erroneous deprivation of such interest and the probable value of additional procedures in reducing that risk, and (3) the government interest.
Mathews,
. The State’s argument echoes the rationale employed by the trial court, which reasoned that the “multi-step process for eligibility determination” satisfies due process requirements. Findings of Fact, Conclusions of Law, and Summary Judgment, Appellants’ App'x at 29. The trial court considered the "multi-step process” to include the following:
[A]n initial interview, verbal instructions for what is needed to establish eligibility, written notice of what is needed to establish eligibility (the Form 2032), the availability of a toll free 1-800 number for assistance, the submission of the materials by the client, evaluation of the submitted materials, and, if the materials submitted by the client are inadequate to establish eligibility, a notice of adverse action.
Id.
. At oral argument before this Court, there was discussion about whether the presence of a 1-800 telephone number on the denial notices, where applicants could seek more information regarding the reasons for their termination, could satisfy the adequate notice requirement of due process. The ability to proactively inquire as to the reasons, however, has been unequivocally rejected by the Seventh Circuit as well as many other courts as an inadequate remedy for an otherwise deficient notice.
Kapps,
. Class C challenges the FSSA's use of each of the codes challenged by Class A except for "Failure to submit medical information necessary to establish eligibility” and challenges two additional codes: "Failure to complete a personal interview required to establish eligibility” (Code 585) and "Failure to return a signed redetermination form” (no three-digit code specified). Appellants' Br. at 12; Plaintiffs' Memorandum of Law in Support of Motion for Summary Judgment, Appellees’ App’x at 365.
.On transfer, the plaintiffs argue that the State has waived this substantive argument because the State’s only argument on cross-appeal was that the evidence designated by the plaintiffs to the trial court was insufficient to support summary judgment. We disagree. When reviewing an appeal of summary judgment, the case is before us as it was before the trial court.
See Wilson,
. The Food Stamp program is also referred to as the Supplemental Nutrition Assistance Program ("SNAP”). See generally 7 U.S.C. §§ 2011-2036.
. Federal law directs the Secretary of Agriculture to "establish uniform national standards of eligibility ... for participation by households in the [Food Stamp program]." 7 U.S.C. § 2014(b). State agencies responsible for administering the program are prohibited from ”impos[ing] any other standards of eligibility as a condition for participating in the program.” Id.
. Section 273.2(h) applies only to initial applications for benefits; Section 273.14(e) addresses delays during the recertification process. 7 C.F.R. §§ 273.2(h), 273.14(e). Because the two are substantially similar in language and effect, we deal only with Section 273.2(h) for simplicity.
. When the applicant refuses to cooperate, Sections 273.2(d)(1) and (c)(5) require that the state provide the applicant with a notice that "inform[s] the household of the State agency's responsibility to assist the household in obtaining required verification.” 7 C.F.R. § 273.2(c)(5), (d)(1). Where the applicant only fails to cooperate, the state must comply with Section 273.2(h)(l)(i). Id. § 273.2(h)(l)(i).
.Because we hold that federal Food Stamp law permits the State to deny benefits when an applicant fails to cooperate, the State has properly notified class members of the standard on which their eligibility determinations
. The requirements imposed on state and local government services by Title II of the ADA and Section 794 of the RA are generally the same, although some differences, which are not relevant here, have been recognized. 42 U.S.C. § 12201(a) ("Except as otherwise provided in this chapter, nothing in this chapter shall be construed to apply a lesser standard than the standards applied under title V of the Rehabilitation Act of 1973 (29 U.S.C. 790 et seq.) or the regulations issued by Federal agencies pursuant to such title.”);
Henrietta D. v. Bloomberg,
