Thomas v. Kent
Thomas v. Kent
Opinion of the Court
ORDER RE: PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT
Fernando M. Olguin, United States District Judge *1050Having reviewed and considered all the briefing filed with respect to the Motion for Summary Judgment [ ] (Dkt. 193, "Motion") filed by plaintiffs Jerry Thomas ("Thomas"), Sean Benison ("Benison"), and Juan Palomares ("Palomares") (collectively, "plaintiffs"), the court finds that oral argument is not necessary to resolve the Motion, see Fed. R. Civ. P. 78 ; Local Rule 7-15; Willis v. Pac. Mar. Ass'n,
INTRODUCTION
On October 23, 2014, plaintiffs filed this action against the California Department of Health Care Services ("DHCS") and former DHCS Director, Toby Douglas. (See Dkt. 4, Complaint). Plaintiffs filed a First Amended Complaint on January 29, 2015, (see Dkt. 26, "FAC"), and the operative Second Amended Complaint on July 7, 2015. (See Dkt. 70, "SAC"). In the SAC, plaintiffs assert three claims against DHCS and the current DHCS Director, Jennifer Kent (collectively, "defendants") for violations of: (1) the Americans with Disabilities Act ("ADA"),
BACKGROUND
Plaintiffs are California residents who "all have significant physical disabilities and were institutionalized but now live in their own homes with Medicaid-funded nursing and attendant care[.]" (See Dkt. 194, Parties' Joint Memorandum of Points and Authorities Re: Plaintiffs' Motion for Summary Judgment [ ] ("Joint Br.") at 1). "Medicaid, called Medi-Cal in California, is a joint federal and state medical assistance program for eligible low-income people." (Id. at 4). Plaintiffs receive home care pursuant to the Nursing Facility/Acute Hospital Home and Community-Based Services Waiver program ("NF/AH Waiver" or "Waiver"), which "is intended to provide in-home services for Medicaid recipients with disabilities who qualify for placement in nursing facilities and other institutions." (Id. at 1). The NF/AH Waiver program is operated by the DHCS, (See
When the instant Motion was filed, the NF/AH Waiver program provided that eligible patients "may receive services ... if they require a level of care otherwise available in an institution" such as a hospital or nursing facility. (See Dkt. 112, Statement of Interest of the United States of America ("SOI") at 2). In that circumstance, the "cost of services available to" the patient is "capped according to that *1051individual's designated level of care." (Id. ). "Although the caps correspond to the type of institution in which the individual would otherwise receive services, the Waiver caps are lower than the average cost of providing care in the corresponding institution." (Id. ). Despite the Waiver's cost limits, defendants "have administered treatment plans for individuals on the [W]aiver with costs in excess of the applicable limit." (Id. ). Here, the DHCS sent letters to all three plaintiffs on December 2, 2015, stating that if the costs of plaintiffs' medically necessary services exceed the Waiver's current individual cost limit, the DHCS will nonetheless continue to pay for those services. (See Dkt. 194, Joint Br. at 20, 22 & 25).
After the instant Motion was filed, the CMS approved an amendment to the Waiver program. (See Dkt. 305, Defendants' Ex Parte Application to: Notify the Court of New Authority [ ] ("Defs.' Application") at 4-5). The amendment "purports to remove the individual cost limitations" from the Waiver program. (See Dkt. 171, Supplemental Statement of Interest of the United States of America ("Supp. SOI") at 1). However, plaintiffs contend that the amendment "simply embedded the cost limits into a different section of the Waiver document ... and now calls them 'cost amounts' " instead of "cost limits." (See Dkt. 306, Plaintiffs' Opposition to Defendants' Ex Parte Application to: Notify the Court of New Authority [ ] ("Pls.' Opp. to Defs.' Application") at 10). Indeed, the amended Waiver program sets forth the same cost limit figures as it did before the amendment took effect. (Compare Dkt. 305-2, Defs.' Application, Exh. A, Application for a 1915(c) Home and Community-Based Services Waiver at ECF 31939 (amended Waiver program) with Dkt. 197-22, Declaration of Elissa Gershon [ ] ("Gershon Decl."), Attachment ("Att.") 66, Nursing Facility/Acute Hospital (NF/AH) Transition and Diversion Waiver at ECF 25149 (Waiver program before amendment)).
According to plaintiffs, the amended NF/AH Waiver program will continue to encourage a "practice of imposing individual cost limits far below institutional rates[,]" (see Dkt. 306, Pls.' Opp. to Defs.' Application at 12), which forces participants "to utilize lower cost Waiver services (i.e., unlicensed attendant care instead of nurses) or reduce the amount of services the participant receives." (Dkt. 194, Joint Br. at 7). In addition, plaintiffs state that "participants with service needs in excess of the individual cost limits may also be disenrolled from the Waiver and 'will have no other option but be admitted to nursing facilities to ensure their health and safety.' " (Id. ). Plaintiffs therefore "seek injunctive and declaratory relief ... requiring Defendants to take steps to ensure that Plaintiffs ... can get the services they need to remain safely at home[.]" (Id. at 1).
Further, although the DHCS "has stated that Plaintiffs can receive all medically necessary waiver services without regard to the cost limits[,]" (Dkt. 194, Joint Br. at 3), plaintiffs contend that the DHCS "has still refused to approve all of the services recommended by their doctors." (Id. at 1). In late 2015, all three plaintiffs submitted updated requests for Waiver services to the DHCS. (See
LEGAL STANDARD
Rule 56(a) of the Federal Rules of Civil Procedure authorizes the granting of summary judgment "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." The standard for granting a motion for summary judgment is essentially the same as for granting a directed verdict. See Anderson v. Liberty Lobby, Inc.,
The moving party has the initial burden of identifying relevant portions of the record that demonstrate the absence of a fact or facts necessary for one or more essential elements of each cause of action upon which the moving party seeks judgment. See Celotex Corp. v. Catrett,
If the moving party has sustained its burden, the burden then shifts to the nonmovant to identify specific facts, drawn from materials in the file, that demonstrate that there is a dispute as to material facts on the elements that the moving party has contested. See Celotex, 477 U.S. at 324, 106 S.Ct. at 2553 ; Anderson,
In determining whether a triable issue of material fact exists, the evidence must be considered in the light most favorable to the nonmoving party. See Barlow v. Ground,
DISCUSSION
Plaintiffs contend that the NF/AH Waiver program violates the ADA, the Rehabilitation Act, and California Government Code §§ 11135 & 11139 because its cost limits create a "serious risk of institutionalization[.]" (Dkt. 194, Joint Br. at 32 & 43). The ADA provides that "no qualified individual with a disability
In enacting the ADA, Congress found that "historically, society has tended to isolate and segregate individuals with disabilities, and, despite some improvements, such forms of discrimination against individuals with disabilities continue to be a serious and pervasive social problem."
The Department of Justice ("DOJ") has promulgated regulations implementing *1054the ADA,
To prevail on a claim for a violation of the ADA's integration mandate, "a plaintiff need only show that the challenged state action creates a serious risk of institutionalization." Dreyfus,
Cost limitations may violate the ADA if a state does not otherwise " 'ensure' that individuals who require additional care to remain in the community will have the necessary alternative services identified and put in place to avoid unnecessary institutionalization." (Dkt. 112, SOI at 6); See Brantley v. Maxwell-Jolly,
*1055On the other hand, "[t]he State's responsibility, once it provides community-based treatment to qualified persons with disabilities, is not boundless." Olmstead,
Here, there are genuine disputes of material fact as to whether the Waiver program's cost limits create a "serious risk of institutionalization" for plaintiffs, See Dreyfus,
The court is troubled by the fact that the DHCS could, at any time, rescind its letters to plaintiffs authorizing medically necessary services above the Waiver's cost limits, and that the DHCS is essentially "refus[ing] to commit to provide Plaintiffs with ongoing services[.]" (Dkt. 194, Joint Br. at 33). Importantly, "Defendants have no written policy or process for authorizing exceptions to the cost ceilings." (Dkt. 112, SOI at 2). These facts tend to show that plaintiffs are at risk of institutionalization as a result of the cost limits imposed by the Waiver program. However, there are material factual disputes regarding whether that risk is "serious" for purposes of the ADA's integration mandate. See Dreyfus,
Similarly, there are genuine disputes of material fact regarding whether plaintiffs are "without medically necessary direct care" because the DHCS has not authorized "all the services that Plaintiffs' doctors have recommended." (See Dkt. 194, Joint Br. at 32-33). Specifically, defendants have presented the opinion of Dr. Rajiv Dhamija, who evaluated all three plaintiffs and concluded that their currently-authorized services are sufficient to ensure that they remain safely in their homes. (See id. at 19, 22 & 24). While the DHCS maintains the right to determine - through the appropriate administrative process - what services are medically necessary for Waiver program participants in the first instance, (see Dkt, 194, Joint Br. at 37);
CONCLUSION
Based on the foregoing, IT IS ORDERED THAT:
1. Plaintiffs' Motion for Summary Judgment (Document No. 193) is denied .
2. Defendants' Ex Parte Application to: Notify the Court of New Authority [ ] (Document No. 305) is granted .
3. Plaintiffs' Ex Parte Application for Expedited Ruling on Plaintiffs' Pending Motion for Summary Judgment (Document No. 311) is denied as moot.
"In determining any motion for summary judgment or partial summary judgment, the Court may assume that the material facts as claimed and adequately supported by the moving party are admitted to exist without controversy except to the extent that such material facts are (a) included in the "Statement of Genuine Disputes" and (b) controverted by declaration or other written evidence filed in opposition to the motion." Local Rule 56-3.
The ADA defines a "qualified individual with a disability" as "an individual with a disability who, with or without reasonable modifications to rules, policies, or practices, the removal of architectural, communication, or transportation barriers, or the provision of auxiliary aids and services, meets the essential eligibility requirements for the receipt of services or the participation in programs or activities provided by a public entity."
Defendants have not raised a fundamental alteration defense in opposition to plaintiffs' Motion. (See, generally, Dkt. 194, Joint Br.; see also Dkt. 200, Defendants' Response to Second Supplemental Statement of Interest [of the United States of America] at 1 ("Defendants did not intend to raise that defense in their opposition to Plaintiffs' third MSJ, and have not asserted it at any other time during this case.")).
The court "afford[s] DOJ's view considerable respect." Dreyfus,
For example, defendants assert that although the DHCS "has no written policy or written criteria to approve services above the individual cost limit for beneficiaries in the currently approved NF/AH Waiver, it has authorized medically necessary waiver services costing in excess of the individual cost limit and have authorized such services for over 400 NF/AH Waiver participants to ensure that they remain safely in their homes." (Dkt. 195, Parties' Statement of Uncontroverted Facts at D93).
Reference
- Full Case Name
- Jerry THOMAS v. Jennifer KENT
- Status
- Published