Anti-Lien Statutes Provide Plaintiff With Cognizable Action Under Sec. 1983

A U.S. district court in Colorado rules that the anti-lien provisions in federal Medicaid law create a mandatory or binding obligation that can be enforced through a civil rights lawsuit. Perez v. Henneberry (D. Colo., No. 09-cv-01681-WYD-MEH, April 12, 2010).

Isabelle Perez, a Medicaid recipient, was injured at birth and suffers from multiple birth defects. In 2008, Isabelle settled a lawsuit against her doctor after the Colorado Department of Health Care Policy and Financing agreed to accept $100,000 from the settlement for past medical care. When Isabelle's conservator subsequently reached a settlement with the hospital where Isabelle was born, the Department objected, claiming that it was entitled to full payment of Isabelle's past medical bills.

In response to the state's claim, Isabelle filed a civil rights lawsuit against the Department, claiming that it violated her rights under the anti-lien provisions of federal Medicaid law (42 U.S.C. 1396p (a) (1) and 42 U.S.C. 1396p (b) (1)) and the disability trust exception statute (42 U.S.C. 1396p (d) (4) (A)). The state filed a motion to dismiss, claiming that none of the statutes cited by Isabelle conferred individual rights that could be enforced through a civil rights lawsuit. The state specifically cited the 10th Circuit Court of Appeals' recent decision in Hobbs v. Zenderman as evidence that 1396p (d) (4) (A) does not grant a plaintiff an individual right that can be asserted through a suit.

The U.S. District Court for the District of Colorado, citing Hobbs, dismisses the portion of Isabelle's suit based on 1396p(d)(4)(A), but it allows the remainder of her suit, based on the anti-lien statutes, to move forward. The court finds that "the language 'no lien may be imposed' and 'no adjustment or recovery . . . may be made' indicates a mandatory or binding obligation . . . [t]hus, I find that [the anti-lien statutes] provide Plaintiff with a cognizable action under 1983."

For the full text of this decision, go to: https://attorney.elderlawanswers.com/full-text-of-opinion-in-perez-v-henneberry-d-colo-no-09-cv-01681-wyd-meh-april-12-2010-8214

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