10th Circuit Panel Upholds Colorado's Authority To Terminate Medicaid For Thousands Of Immigrants

IMMIGRANTS & PUBLIC BENEFITS

Health Care

10TH CIRCUIT PANEL UPHOLDS COLORADO'S AUTHORITY TO TERMINATE MEDICAID FOR THOUSANDS OF IMMIGRANTS
Immigrants' Rights Update, Vol. 18, No. 1, February 17, 2004

In a 2 to 1 decision, a Tenth Circuit Court of Appeals panel has upheld Colorado's authority to terminate federally funded Medicaid for thousands of lawfully present immigrants, including seniors, persons with disabilities, and members of families who have lived in the United States for years.

On Mar. 5, 2003, Colorado passed a law ending Medicaid eligibility for most "qualified" immigrants, asserting that the 1996 federal welfare law granted states permission to exclude from coverage all but a small group of these immigrants. Implementation of the cuts was scheduled for Apr. 1, 2004. On Mar. 27, the plaintiffs challenged the state's discrimination against immigrants as impermissible under the equal protection clause of the U.S. Constitution. The plaintiffs also claimed that Colorado violated the Medicaid Act and due process by failing to provide adequate notice and hearing rights for immigrants facing the loss of health coverage.

The district court granted a temporary restraining order but denied the plaintiffs' request for a preliminary injunction. The court of appeals granted an injunction blocking the Medicaid terminations pending appeal and invited the federal government to participate in the case. The Tenth Circuit panel issued its decision on Jan. 12, 2004, based primarily on its conclusion that, since the federal statute permits the state to exclude these immigrants from coverage, the state's action need only be "rational" to be upheld.

In a forceful dissent, Judge Henry argued that the opinion unduly minimizes the relevant U.S. Supreme Court precedent, Graham v. Richardson, 403 U.S. 65 (1971), and "compromises [the Tenth Circuit's] equal protection jurisprudence." In Graham, the Court used strict scrutiny to strike down state discrimination against immigrants, despite the state's claim that its restriction was authorized by a federal law.

The three judges agreed that Colorado violated the Medicaid Act by failing to provide a right to pretermination hearings for those who failed to return redetermination forms to the state. The panel directed the district court to preliminarily enjoin the state from denying appeal requests by these Medicaid recipients.

The plaintiffs plan to seek a rehearing on the other issues before the entire Tenth Circuit Court.

Soskin v. Reinertson, No. 03-1162, 2004 U.S.App. LEXIS 343 (Jan. 12, 2004).