The state of California made cuts to many medical facilities and doctors due to their lack of money. This is seemingly allowed in the Medicaid Act, section 30(A). In three different cases the state was sued, one being the Independent Living Center of Southern California. They each won their cases, stating that if the cuts in funding went through then the quality of their services would also suffer and not meet up with the standards of the Medicaid Act. However the Director of Heath Care Services has brought the case to the Supreme Court.
In the Case: California Director Toby Douglas v. Independent Living Center of Southern California, Petitioner Schwartz claims that the 30(A) clause of the Medicaid Act - A Spending clause that says services are paid by the state with recognition to the economic stability of the state itself - is too genaral and does not allow a single service to enforce the Act when finances are cut due to the state’s own recession. Basically saying 30(A) is not enforcible and wants there to be a amendment that allows private services to sue and claim the appropriate reimbursement for their work.
Petitioner Kneedler disagrees saying that Medicaid is an agreement between the Federal Government and the States. Not the private facilities within the states. Schwarts and the other hundreds of thousands of doctors shouldn’t be able to sue becuase it would cause problems across the state when hundreds of judges can make different judgements for each similar case. That would be unfair. Yet he does agree that 30(A) is not complete.
The question is: Who has the right and authority to enforce 30(A) of the Medicaid Act since Congress cannot? The Federal Government or the State?
I perceive that the Federal Government will have to set up another department solely for looking over the Medicaid act and the issues that come along with it like this case and hundreds before it since the Act was set in 1986.