Westside Mothers v. Haveman

289 F.3d 852 (2002)

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Nature of the Case

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Facts

The Medicaid Program was created in 1965 and it provides a federal subsidy to states that choose to reimburse poor individuals for certain medical care. Michigan State is one of the voluntary participants of the program. It has provided eligible residents with Medicaid Services by requiring them to enroll in Health Maintenance Organizations (HMOs) providing medical care in exchange for a flat monthly fee per participant since 1997. The federal requirement states that the participating state must provide early and periodic screening, diagnosis, and treatment services for individuals who are eligible under the plan and are under the age of 21. In 1999, Ps filed a lawsuit under 42 U.S.C. § 1983 alleging that Ds, a group of State Officials, have failed to provide early and periodic screening, diagnosis, and treatment services as required by the Medicaid Act and related laws by: (1) refusing to provide, and not requiring participating HMOs to provide the comprehensive examinations, (2) not requiring the participating HMOs to provide necessary healthcare, diagnostic and treatment services, (3) not effectively informing Ps of the existence of the services, (4) failure to provide the Ps with the transportation and scheduling services to take advantage of the services, and (5) developing a Medicaid program which cannot deliver eligible children the care required by the provisions of the Act. The District Court dismissed the suit on the grounds of (1) lack of constitutional standing, and (2) lack of prudential standing for three of the organizations. In addition, the remaining claims were dismissed on the ground that Medicaid was only a contract between a State and the federal government and not a supreme law of the land. It held that §1983 does not create a cause of action available to plaintiffs to enforce the provisions in question. The Court also found that Michigan was the real defendant and thus “possessed sovereign immunity against the suit.” Ps appealed.