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Noland v. Shalala
12 F.3d 258 (D.C. Cir. 1994) ; Clearinghouse Number: 46246
Description
D.C. Circuit Holds 209(b) States Are Not Required to Deduct Social Security COLAs for Medicaid Eligibility Purposes
Abstract
The D.C. Circuit has held that the Pickle Amendment, 42 U.S.C.
1396a note, does not require section 209(b) states to disregard
social security COLAs for purposes of determining Medicaid
eligibility and spend-downs. Appellants had argued that Congress
intended, and the express language of the Amendment indicates, that
COLA disregards should apply to all states, including 209(b)
states. Appellants maintained that HHS's interpretation that
209(b) states are free to decide whether they will disregard COLAs
is unreasonable, fails to give effect to all the provisions of the
Medicaid statute, and violates the Medicare Catastrophic Coverage
Act of 1988, 42 U.S.C. 1396a(r)(2). The district court upheld the
regulation, and appellants appealed. The D.C. Circuit found that
HHS's interpretation was reasonable because it maintained equal
treatment between Pickle beneficiaries and those who currently
receive SSI benefits in the same state. The court noted, for
example, that appellants' proposed interpretation would cause
some SSI recipients to pay higher spend-downs than Pickle
beneficiaries, who, by definition, have higher incomes.
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