On December 23, 2014, the American Network of Community Options and
Resources (ANCOR) filed an amici
curiae ("friends of the court") brief in the Supreme
Court case Armstrong v. Exceptional
Child Center, Inc. (Docket No. 14-15). The
case has the potential to significantly impact state Medicaid programs
nationwide if the Court rules that private providers have legal standing to
hold states accountable to having adequate Medicaid rates.
ANCOR was joined in the brief by the American Health Care Association/National
Center for Assisted Living, the National Community Pharmacists Association, the
American Pharmacists Association, and America's Essential Hospitals. The brief
was prepared and filed by Joel Hamme, Esq., of Powers Pyles Sutter and Verville,
P.C.
The case was originated in Idaho by a group of Medicaid waiver
residential habilitation providers who brought suit against the state
challenging the adequacy of existing Medicaid rates. The providers argued that
the state was aware that existing rates were not sufficient to provide services
prescribed by the state Medicaid program, and brought action against the state
when the state legislature did not appropriate necessary funding. At issue is
whether a private party, in this case, providers, has the right to bring a
private right of action against a state under the Supremacy Clause of the
United States Constitution. The Supremacy Clause establishes that federal law
generally takes precedence over state law. Medicaid is operated by states with
federal oversight, requirements, and funding. The Supreme Court granted review
of the case to consider whether the Supremacy Clause applies under these
circumstances.
"Ensuring that Medicaid programs are funded appropriately is
essential to providing quality supports and services to people with significant
disabilities," said Chris Sparks, President of ANCOR Board of Directors.
"We hope this case will reinforce the importance of regularly reviewing
rate adequacy and making periodic adjustments to meet people's needs."
In its brief, ANCOR argues that while the Supreme Court should
affirm the lower court's determination that private parties do have a private
right of action under the Supremacy Clause, the court could also come to the
same conclusion by applying a Congressional mandate that requires that certain
causes of action relating to Title XIX of the Social Security Act (which
authorizes Medicaid) be considered using standards established before 1992.
Barbara Merrill, Chief Executive Officer of ANCOR said, "ANCOR
is pleased to have the opportunity to advocate for the right of providers to
challenge inadequate rates within their state Medicaid system. We are
encouraged that the Court has taken up this issue which will hugely impact
millions of people that rely on Medicaid funding for essential services."
Amicus briefs are filed by interested parties who are not litigants in a
case. More than a dozen amici briefs
have been filed to date, representing dozens of interested parties. (A complete
list with links to court documents, including amicus briefs filed, is available here.) In addition
to provider and other stakeholder organizations, several Democratic members of
the U.S. Congress filed an amici brief supporting the argument that Congress
intended to preserve the private cause of action for parties who seek to
enforce Medicaid's federal authority over state actions to the contrary.
The Supreme Court will hear oral arguments on the case on January
20, 2015.
