William W. WATSON, Jr.; Charles E. Papst, Jr., by and through his next friend, Nida Morris; Robert Woodford, by and through his next friend, Anita Geistlinger; Heidi Halter, by and through her next friend Hayley Adams; Amar Juslen, by and through his next friend, Raul Juslen; Irma Radtke, by and through her next friend, Hans Radtke; Shelli A. Cameron; and Oregon Advocacy Center, Plaintiffs-Appellants, v. Gary WEEKS, in his official capacity as Director, Oregon Department of Human Services; Lynn Read, in her official capacity as Acting Administrator of the Office of Medical Assistance Program; and James Toews, in his official capacity as Acting Administrator, Seniors and People with Disabilities, Defendants-Appellees.
No. 04-35704
United States Court of Appeals, Ninth Circuit
Argued and Submitted Dec. 13, 2005. Filed Feb. 8, 2006.
436 F.3d 1152
Janet A. Metcalf, Assistant Attorney General, Salem, OR, for the appellees.
Bruce Vignery, AARP Foundation Litigation, Washington, D.C., and Jane Perkins, National Health Law Program, Chapel Hill, NC, for amici curiae.
Before: HUG, GRABER, and CLIFTON, Circuit Judges.
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,
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
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
Plaintiffs appeal the dismissal of their complaint and the denial of leave to amend. We have jurisdiction under
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.”
The “medical assistance” provided by a state plan must include certain minimum services to “all individuals” who are financially eligible. See
A state plan must also provide “reasonable standards ... for determining eligibility for and the extent of medical assistance under the plan,”
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
B. Oregon‘s Community-Based Services Waiver
Oregon initiated its community-based services waiver program in 1981. The waiver included the Client Assessment and Planning System, whereby the state classified eligible individuals into service priority levels based on medical need; the levels number from one to eighteen, with level one reflecting the most urgent medical need.1 Oregon uses a single set of criteria for determining eligibility, whether services are in nursing facilities or community based.2 The original waiver provided care to all individuals assessed at levels one through seventeen. The Department also made community-based services available to any person eligible for institutional nursing care, leading to a large reduction in the services that had to be provided at nursing facilities.
More recently, however, Oregon has eliminated coverage for some service levels, purely to cut state spending. On January 27, 2003, due to budget difficulties, the Department submitted a proposed waiver modification to eliminate eligibility for individuals in service levels fifteen to seventeen. The Secretary approved the modification. On February 24, 2003, the Department successfully requested another modification: the elimination of eligibility for individuals in levels ten to fourteen. The Oregon legislature subsequently restored funding through August 31, 2003, for service levels ten and eleven, and restored levels ten through thirteen for the 2003-2005 budget. Current Oregon regulations reflect these limitations, providing that only those individuals in levels one through thirteen are eligible for services.3
Under Oregon‘s cutbacks, individuals who are deemed ineligible for nursing facility or community-based services cannot challenge the state‘s decision to eliminate eligibility of a service level, but may challenge only their placement into their particular service level. Oregon estimated that elimination of levels fifteen through seventeen affected 4,000 individuals in community-based settings and 85 individuals in nursing facilities. The elimination of levels ten through fourteen was projected to terminate services for 6,100 individuals in community-based settings and 300 individuals in nursing facilities.
II
COURT PROCEEDINGS
On February 20, 2003, Plaintiffs filed a complaint against the Department in federal district court for the District of Oregon.4 On March 24, 2003, before the Department had responded, Plaintiffs filed a First Amended Complaint. The amended complaint set forth five claims for relief; Plaintiffs are appealing only the district court‘s dismissal of the first three of these claims. The first claim alleged that the Department‘s withdrawal of eligibility vio-
On April 22, 2003, the Department moved to dismiss the claims under FRCP 12(b)(6). On November 24, 2003, the magistrate judge filed a report that recommended granting the motion. On December 10, 2003, Plaintiffs filed objections to the magistrate judge‘s findings and recommendations. They stated that they were “entitled to an opportunity to amend the complaint,” identifying two ways in which their amended complaint might be amended further. First, to avoid any misperception that Plaintiffs were alleging a right to community-based services, rather than nursing facility services, Plaintiffs stated that they could “emphasize more strongly that they assert a statutory right” to nursing facility services. Second, Plaintiffs stated they could add causes of action under the Supremacy Clause.
On June 25, 2004, the district court entered a judgment and order that granted the Department‘s 12(b)(6) motion. The district court adopted the findings and recommendations of the magistrate judge. In the order, the district court also denied Plaintiffs leave to amend their complaint. The court noted that Plaintiffs already had amended their complaint “and that the opposing parties could suffer significant prejudice from plaintiffs’ amendment at this stage in the litigation, after the extensive briefing and arguments that have been presented.” In addition, the court noted “the apparent futility of amendment under the binding authorities as presently interpreted.” The district court entered final judgment against Plaintiffs on June 25, 2004. Plaintiffs timely filed a Notice of Appeal on July 21, 2004.
III
STANDARD OF REVIEW
We review de novo the district court‘s decision to grant a motion to dismiss pursuant to FRCP 12(b)(6). ASW v. Oregon, 424 F.3d 970, 974 (9th Cir. 2005). We accept as true all well-pleaded facts in the complaint and construe them in the light most favorable to the nonmoving party. Id. A claim should be dismissed only if it appears beyond doubt that the plaintiff can establish no set of facts under which relief could be granted. Pacheco v. United States, 220 F.3d 1126, 1129 (9th Cir. 2000).
IV
STATUTORY ANALYSIS
It may be helpful to provide a brief explanation of the applicable law for determining whether a particular federal statute can be enforced through a private right of action under section 1983. Under section 1983, persons are liable if they act under color of law to deprive individuals of “any rights, privileges, or immunities secured by the Constitution and laws” of the United States.
In Suter v. Artist M., 503 U.S. 347 (1992), the Court distinguished Wilder and found no section 1983 right for parents and children who sued under the Adoption Assistance and Child Welfare Act of 1980, because “reasonable efforts” to keep children out of foster homes imposed only “a rather generalized duty” on the state and conferred no individualized rights.6 503 U.S. 347, 363 (1992). The Suter Court explained that Wilder‘s term “reasonable and adequate” was accompanied by sufficiently detailed guidance to a court that it could be judicially enforced. Suter, 503 U.S. at 359. By contrast, the statutory term in Suter, “reasonable efforts,” provided no such guidance and thus a court could not readily ascertain the outlines of the alleged right. Id. at 359-60. Suter has been since limited as a bar to finding a section 1983 right; Congress responded to the opinion by enacting the “Suter fix,”
In 1997, the Supreme Court established the current three-prong test for determining whether a particular federal statute can be enforced through a private right of action under section 1983. Blessing v. Freestone, 520 U.S. 329, 340 (1997). The Blessing test requires: 1) that Congress intended the statutory provision to benefit the plaintiff; 2) that the asserted right is not so “vague and amorphous” that its enforcement would strain judicial competence; and 3) that the provision couch the asserted right in mandatory rather than precatory terms. Id. at 340-41. If the provision meets this test, then there is a presumption that it is subject to private enforcement under section 1983. Id. at 341. The presumption is rebutted, however, if Congress expressly or impliedly foreclosed enforcement under section 1983; an implied foreclosure occurs if Congress created “a comprehensive enforcement scheme that is
The Supreme Court clarified the first prong of the Blessing test in Gonzaga University v. Doe, 536 U.S. 273 (2002). In Gonzaga, the Court held that congressional intent to benefit the plaintiff must be shown by statutory language “phrased in terms of the persons to be benefited.” Id. at 284 (quoting Cannon v. Univ. of Chicago, 441 U.S. 677, 692 n. 13 (1979)). “[A]nything short of an unambiguously conferred right” will not support a 1983 action. Gonzaga, 536 U.S. at 283. The Court explained that section 1983 was intended to enforce “rights” as opposed to “benefits” or “interests,” the latter two being too broad or vague for judicial enforcement. Id. To create enforceable rights, the statutory provision in question must focus on individual rights to benefits, rather than only the aggregate or system-wide policies and practices of a regulated entity. See id. at 287-88. As exemplars of statutory provisions that create section 1983 rights, the Court discussed Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, both of which use the wording “[n]o person ... shall ... be subjected to discrimination.” Id. at 284 & n. 3.
V
EXISTENCE OF A PRIVATE RIGHT OF ACTION
As a threshold matter, we accept as true Plaintiffs’ statement that those individuals assessed at levels one through seventeen need nursing facility services. See ASW, 424 F.3d at 974. Plaintiffs’ medical need may indeed be more than a well-pleaded fact; the magistrate judge found that “[p]laintiffs are individuals whose serious medical problems and cognitive limitations require that they either be cared for in a nursing facility or receive an equivalent level of care in community settings.”
A. Section 1396a(a)(10) Creates a Private Right of Action
According to
In holding that this statutory provision creates a right enforceable by section 1983, we join five federal circuit courts that have already so held.8 No circuit court has held
Our initial inquiry under the first prong of Blessing is whether
There is strong support for this reading of
In S.D. ex rel. Dickson v. Hood, the Fifth Circuit similarly held that
Within this circuit, we recently implied that
Although
42 U.S.C. § 1396a(a) sets out a comprehensive list of requirements that a state plan must meet, it does not describe every requirement in the same language. Some requirements, such as those addressed in Sabree [§ 10], focus on individual recipients, while others are concerned with the procedural administration of the Medicaid Act by the States and only refer to recipients, if at all, in the aggregate. Section 30(A) is one of the latter provisions....
For contrast, it may be helpful to discuss a Medicaid Act provision that we have held did not create a section 1983 right. In San Lazaro Ass‘n v. Connell, 286 F.3d 1088, 1099 (9th Cir. 2002), we held that
In addition to meeting the first prong under Blessing,
Because
The Department cannot rebut the presumption of a section 1983 right.13 Although there are state administrative procedures available to Plaintiffs under section 1396a(a)(3), “[t]he availability of state administrative procedures ordinarily does not foreclose resort to § 1983.” Wilder, 496 U.S. at 523. In Wilder, medical providers had the right to contest individual claims for payment before a state agency, but could not challenge the overall method by which payment rates were calculated. Id. The Court found that such “limited” administrative procedures could not be considered comprehensive and could not show congressional intent to foreclose a section 1983 right. Id. In the instant appeal, the administrative rights granted by the Department are similar to those in Wilder; individuals may only appeal their service level determination, not the state‘s underlying decision to not serve individuals in certain levels. The limited rights available to Plaintiffs are also similar to those analyzed by this court in ASW v. Oregon, where we found that providing adoption assistance beneficiaries with a fair hearing before a state agency regarding individual benefit claims was not a comprehensive enforcement mechanism incompatible with a section 1983 action. 424 F.3d at 978. Plaintiffs have established a section 1983 right under
B. Section 1396a(a)(17) Does Not Create a Private Right of Action
We are the first federal circuit to address whether
There is insufficient evidence of congressional intent to create a section 1983 right under this provision.
Even if
VI
DENYING PLAINTIFFS LEAVE TO AMEND
The parties devoted little briefing and no argument to this portion of the appeal, and we find it unnecessary to reach this question. Once proceedings resume on the remand of Plaintiffs’ section 1983 claim under
VII
CONCLUSION
Plaintiffs have a private right of action under section 1983 to enforce
Each party shall bear their own costs on appeal.
