Supreme Court of the United States Holds NCGS §108A–57 Violates Federal Law!

Remember my post on March 14, 2013, stating that NCGS 108C-7 violates federal law? Well, obviously I wrote that blog without pursuing a legal case and without having a judge decide whether NCGS 108C-7 actually violates federal law.

But there may be some validity to my claim that 108C-7 violates federal law.

Yesterday the Supreme Court of the United States wrote an opinion regarding another North Carolina Medicaid statute: NCGS 108A-57.  Wos v. E.M.A.  In Wos v. E.M.A., the Supreme Court held that the NC Medicaid statute 108A-57 is pre-empted by the Supremacy Clause in the Constitution.

By way of background, the case originated from a mom and dad bringing a medical malpractice claim against the doctor and hospital that delivered their child, E.M.A.  E.M.A. suffered multiple serious injuries during birth, leaving her deaf, blind, and unable to sit, walk, crawl, or talk. She also suffers mental retardation and seizures.  Due to these birth injuries, Medicaid paid $1.9 in hospital costs, surgeries and health care on behave of E.M.A. In November 2006, the NC Court approved a settlement for $2.8 million.  If you think that the settlement seems low, it is low.  Apparently the settlement was based on the amount of malpractice insurance the defendants possessed.

A representative from Medicaid (DMA) informed the parents that Medicaid would seek reimbursement for the $1.9 million expended.

“E. M. A. and her parents then filed this action under Rev. Stat. §1979, 42 U. S. C. §1983, in the United States District Court for the Western District of North Carolina. They sought declaratory and injunctive relief, arguing that the State’s reimbursement scheme violated the Medicaid anti-lien provision, §1396p(a)(1) .”

After appeal after appeal and all the way up to the U.S. Supreme Court, North Carolina fought E.M.A. and her parents, saying that the State was entitled to Medicaid reimbursement as required under NCGS 108A-57.

The U.S. Supreme Court disagreed .

In the words of the Supreme Court (as to why the NC Statute was pre-empted):

“Instead, North Carolina has picked an arbitrary number—one-third—and by statutory command labeled that portion of a beneficiary’s tort recovery as representing payment for medical care. Pre-emption is not a matter of semantics. A State may not evade the pre-emptive force of federal law by resorting to creative statutory interpretation or description at odds with the statute’s intended operation and effect. ”

Interesting that the Supreme Court picked the word “arbitrary.”

In light of the Wos v. E.M.A. decision, I think it would be prudent to question other Medicaid statutes. Most likely other Medicaid statutes, similarly, violate federal law.  Maybe…..108C-7.

See my March 14, 2013, blog for my legal reasons that 108C-7 violates federal law.

About kemanuel

Medicare and Medicaid Regulatory Compliance Litigator

Posted on March 21, 2013, in Congress, DHHS, Division of Medical Assistance, Federal Law, Health Care Providers and Services, Legal Analysis, Legislation, Medicaid, NCGS 108C-7, North Carolina, US Supreme Court, Wos and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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