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Stowell v. SHHS, 1st Cir. (1993)
Stowell v. SHHS, 1st Cir. (1993)
Patrick Ende, with whom Jack Comart and Pine Tree Legal
_____________
____________
________________
Assistance were on brief, for appellants.
__________
Robin
S. Rosenbaum,
Attorney,
Civil Division,
U.S.
_____________________
Department of
Justice, with whom Stuart
Schiffer, Acting
_________________
Assistant Attorney General, Jay P. McCloskey, United States
__________________
Attorney, and Barbara C. Biddle, Attorney, U.S. Department of
__________________
Justice, were on brief, for appellee.
Christopher C. Leighton, Deputy Attorney General, with whom
_______________________
Michael E. Carpenter, Attorney General, and Thomas D. Warren,
_____________________
_________________
Deputy Attorney General, were on brief for State of Maine, amicus
curiae.
_________________________
September 10, 1993
_________________________
maze of
its resolution
turns on
the
court below, that the Secretary of Health and Human Services (the
Secretary) permissibly concluded
as
used in
payments
42 U.S.C.
received
under
1396a(c)(1)
the
Aid to
"payment levels"
(1988) refers
Families
Consequently, we affirm.
with
to baseline
Dependent
I.
I.
BACKGROUND
BACKGROUND
AFDC
service
program paid
largely by
III
is a voluntary,
the states.
Cir. 1991)
by both
See
___
sovereigns but
42 U.S.C.
Doucette v. Ives,
________
____
administered
601-615
947 F.2d
heuristic
program
for
purposes, we
to
the
limit our
particular
discussion of
problem
around
For
this intricate
which
this
case
revolves.
Through AFDC,
(the basic AFDC
state to
family
grant).
a monthly stipend
varies from
If a
most states deem this money to offset the guaranteed AFDC stipend
pro tanto.
___ _____
Under such a
& n.4
(N.D. Ill.
and identifying
few
states,
conventional approach
Maine
among
to supplemental
them,
income.
take
Up to a
less
point,
it
Only
against the
basic
AFDC
grant.
aggregate
calls the
"standard of need"
basic
AFDC
grant
in
supplemental income
phenomenon
does
proportion
received.
when
the
Maine begin to
to
family's
the
marginal
In the bureaucratic
shrink the
amount
of
idiom, this
until the family's supplemental income has filled the gap between
the
higher)
standard-of-need
amount.
Even then,
offset
is
standard of
narrowed
In 1991, Maine,
woes,
this
upgrading
while
gap
by
basic
AFDC
the
on April
temporary
relatively
1,
stay).
1992 (after
As
a result,
high amounts
of
the
grants
district court
AFDC-eligible
supplemental
lifted
families
income receive
with
lower
or no supplemental
income receive
More specifically,
payments are
collected by
to AFDC recipients as
the state
and
___
3
42 U.S.C.
of need
lower overall
_______
received
payments
prior
to
from
May 1,
in the standard
the
state than
1988.1
After
they
would
the changes
have
became
funding
for Maine.
prompted
the
injunctive
relief, 5
Christine
Stowell
instant
suit.
U.S.C.
accused
maintenance-of-effort
Seeking
702 (1988),
the
provision
Secretary
contained
declaratory
and
plaintiff-appellant
of
in
violating
the
Medicare
That
provision,
codified at
42
U.S.C.
1396a(c)(1)
____________________
In constructing
this example, we
have excluded any
reference to the $50 "pass-through" payment described in 42
U.S.C.
657(b)(1) (1988), which was unaffected by the revisions
in question.
plan if the state's AFDC program sets "payment levels" lower than
those in
effect
on May
1,
1988.
Refined
to
bare
essence,
provision prohibits
the
Secretary from
approving state
Medicaid
those in
effect on May 1,
Stowell
and persons
similarly situated
amount of money
currently receive
from
Maine is lower than the amount they would have received under the
did
not
refuse
therefore,
the
to
fund
Maine's
Secretary
violated
Medicaid
the
plan;
and
that,
maintenance-of-effort
provision.
The case proceeded as a
submitted
it on a stipulated record.
parties
Reasoning that
Maine had not, in fact, reduced its payment levels below those in
____________________
3The plaintiff class comprises:
All families in the State of Maine who would
be
eligible
for
AFDC benefits
and/or
supplemental payments under
42 U.S.C
602(a)(28) [providing for payment of child
support collected by the state] under the
AFDC payment levels in effect in Maine on May
1, 1988 and who would receive a smaller total
AFDC plus supplemental
602(a)(28) payment
under the AFDC payment levels proposed to be
effective April 1, 1992 than they would have
received
under the May 1, 1988 payment
levels.
Stowell v. Sullivan, 812 F. Supp. 264, 266 n.3 (D. Me. 1993).
_______
________
5
effect
Secretary.
See Stowell v.
Sullivan, 812
___ _______
F.
Supp. 264,
report).
266-71
On
recommendation.
II.
II.
de
__
(D. Me.
novo
____
________
1993) (reproducing
review,
the
court
magistrate's
adopted
Plaintiffs appeal.
ANALYSIS
ANALYSIS
The issue
of Maine's Medicaid
its
need,
standard
provision.4
court
of
We
violates
have repeatedly
handles a
basis for
wax
the
matter
the
Because
we
are
in
a nisi
____
prius
_____
articulates a
sound
Cir.
maintenance-of-effort
appropriately and
812 F. Supp. at
to lower
hesitate to
words resonate."
989 F.2d
substantial
In re
_____
36, 38 (1st
agreement
with
266-71, we invoke
Whenever
the text
of the
court is
charged with
statute must
be its
statutory
starting
Here, however,
does
____________________
It provides that:
any
State
1396a(c)(1).
it could
amounts plus
plausible
supplemental income
alternatives, and
interpretive possibilities
actually received.
recognizing
that
Given two
the universe
of
we think the
Pointing
referred to the
out that,
basic AFDC
grant
else.
States,
______
286
U.S.
Massachusetts,
_____________
427,
971 F.2d
433
818, 830
(1932);
n.10 (1st
Cir. 1992),
v.
cert.
_____
to express the
of a term of art
used
elsewhere in the
same statute,
in favor of
a more
descriptive
term, does not necessarily mean that the two terms bear different
meanings).
and
ignore common
assigning talismanic
practice.
Courts should
importance to particular
go very
words or
slowly in
phrases
Second:
Second:
______
selective
board.
perusal of legislative
The
centerpiece of this
congressional
purpose
Medicaid-related
"to
history puts no
points on the
effort is a passage
assure
that
coverage of certain
a touchdown by a
the
evincing a
resources
persons] are
[for
not diverted
But
linguistic
thing, the
the
question whether
the stipendiary
amounts
statute cannot
be
all,
that
congressional
safety net,
the
statute itself,
Congress's
underlying
ambiguous
if
term
contingent
the
purpose to
of basic
AFDC
demystified by
grants
and
resort to
an
equally
quoted
passage
provide AFDC
indicates
recipients with
broad
a fixed
_____
levels."
nearly
Because
infinite
8
supplemental
variety
of
income
is
circumstances,
sum; the
Secretary's reading,
on the
other hand,
is
sockdolager is
counteracted
that the
by
its
assistance."
S. Rep.
reprinted
_________
1988
in
__
own
No.
need
of
point
and
377, 100th
the
legislative
payment
standards
for
Cong., 2d
Sess. 1,
49,
Certainly,
the
2776, 2826.
"payment levels"
while appellants'
in
U.S.C.C.A.N.
Secretary's rendition
home
other items
read in
establish
flexibility
quoted passage,
version
enhances
detracts from
state's
it.
See
___
"reviewing legislative
history
is
like
looking over the crowd at a party and picking out one's friends."
Patricia J. Wald,
History in the 1981 Supreme Court Term, 68 Iowa L. Rev. 195, 214
_______________________________________
(1983) (quoting
Leventhal, J.).
In
this instance,
both sides
does not
resolve the
Third:
Third:
_____
specific
plausible
When
question,
courts
construction
administering
Me. Corp., 112
_________
it.
a statute
is silent
frequently
offered
by
the
with respect
afford
deference
agency
to a
to
charged
with
agency interpretation
agency that
the
Secretary heads,
Cir. 1988).
the Department
of
statutes.
maintenance-of-effort provision
grant,
Chevron
_______
principles
Since
to refer only to
pose
formidable
barrier
in
appellants' path.
In
suggest that
has
an
endeavor
to
deference would
not maintained
skirt
this
barrier,
be inappropriate here
a consistent
position.
appellants
because HHS
The suggestion
is
elucidation
meaning of "payment
of
point
that
you
1989
adjustments
"if
in
informing
officials
appears
HHS's
publication
lower
state
the
levels."
make
with no countable
10
considered to meet
Effort Requirements."
of
In subsequent
commentaries, HHS
this reference
was intended
to include
only those
no
income
and
the
AFDC
no
over
inconsistency
above
between
contemporaneous with
this
basic
original
the statute's
grant.
We
see
interpretation,
roughly
agency's
current views.
Appellants'
foundation.
[their]
Agencies "must
rules
and
circumstances."
(citations and
corollary
legal theory
be
policies
Rust v.
____
rests
on
given ample
to
the
an equally
shaky
latitude to
adapt
demands
of
of this rule is
that an agency's
changing
1769 (1991)
An important
deference.
represents a
from, a
an agency
whatever
modification of,
expertise-related
Chevron,
_______
And, moreover,
reasons
for
(collecting cases).
or
even a
sharp departure
judicial
deference.
See id.;
___ ___
interpretation ordinarily
deference may
an agency interpretation
be due.
See Rust,
___ ____
111 S.
to
Ct. at 1769
So it is here.6
____________________
11
Next, appellants
try to
barrier by
taking
a different path.
little
deference because
determining this
meaning
involves
primarily
administrative, skills.
The Chevron
_______
judicial,
as
opposed
to
particular statute's
different degrees
at 17-
987 F.2d 33, 38 (1st Cir. 1993) (collecting cases), this case
not
removed
knowledge.
from
specialized
administrative
to ensure that
"payment levels"
how
that term
the
realm
of
is
were maintained, it
might
be defined
in a
manner
question of
that would
best
service
programs.
its lengthy
experience with
Information
Memorandum
the
(August 5,
in
remarkable
the
statutes involved.
See,
___
over
time,
AFDC
Courts should
of agency expertise
administration,
intricacy.
1992).
See
___
of
not
painstakingly
programs
of
____________________
in detail, why it
ambiguous phrase is
that
Cir.
1988)
(Breyer,
J.,
concurring)
in
administering
(suggesting
statute,
gained
that
daily
firm
of
which
AFDC
unintelligible to
and
Medicaid
are
727 n.7
part,
is
"almost
(1977).
Fourth:
Fourth:
______
our third point.
levels"
as encompassing
AFDC grants
its
Our last
only the
administration.
due is because
phrase "payment
stipendiary amounts
subset of
of basic
and facilitates
a court's
analysis, on
willingness
to defer
may
depend, in
true measure
the
final
agency's interpretation,
13
See Jefferson v.
___ _________
The
murky language of 42
be interpreted as
Cf.,
___
a signal
e.g., Rosado
____ ______
v. Wyman, 397 U.S. 397, 414 n.17 (1970) ("An extensive alteration
_____
in
not
structure of an
established program is
by legislative
history.").
Appellants' construction
that the
any family
received that
on May 1, 1988
discretion by
reorder
its priorities.
levels"
as
appellants
distributing AFDC
set of
For
it would
computational rules
inhibiting a state's
to
ability to
prefer
would
preclude
state
from
In
contrast,
interpreting the
term
"payment
permitting
states
recipients a
to implement
protective floor
changes
that more
while still
efficiently
this latter
discretion traditionally
____________________
available to
maximizes
the states
implementing the
state flexibility,
congressional intent.
49,
in
is a
far closer
of
state
and
approximation of
incidence
AFDC program
flexibility
with
need
and
payment standards).
Nor is this the only straw
We
can safely
preferred
assume that
administrative
Congress,
in enacting
efficiency to
the statute,
administrative clutter.
See Dion v. Commissioner, Me. Dep't of Human Servs., 933 F.2d 13,
___ ____
_______________________________________
17
(1st
Cir. 1991)
administratively
(discussing
streamlined
congressional
procedure
for
interest in
food
an
stamp
recipients).
for the
If the term
hand, the term means all payments made to all AFDC recipients, it
prescribes
calculation.
much
Because
ensures that a
for AFDC and
more
complicated,
the
highly
Secretary's reading
individualized
of the
statute
CONCLUSION
CONCLUSION
15
We need
debatable, the key
go no
further.8
When,
as now,
the case
is
is patently ambiguous,
the
disputed
term, expressed
charged
with the
statute's administration,
great
the
to
weight.
with
clarity
by
the agency
necessarily carries
public
interest
programs.
view,
We hold,
efficient
and
only
not,
and to
implementation
levels" refers
grants
in
programmatic goals
to the
42 U.S.C.
of the
have
affected
the Secretary's
1396a(c)(1) to "payment
stipendiary amounts
as appellants
promote the
argued,
of basic
to
AFDC
total monies
below will be
Affirmed.
Affirmed.
________
____________________
8We
do
not tarry
over
appellants'
assertion that
administrative interpretations and statutory provisions in other
fields treat certain supplemental income in the same fashion as
basic AFDC grants.
In the first place, these interpretations,
all of which deal with program administration, are analytically
distinct and, therefore, inapposite.
See Stowell v. Sullivan,
___ _______
________
812 F. Supp. at 270-71 (discussing identical proffer).
In the
second place, this is a zero-sum game; the Secretary has produced
a counter-list of interpretations and provisions which treat
supplemental income and basic AFDC grants differently. Compare,
_______
e.g., 51 Fed. Reg. 29,223, 29,224 (1986) (declaring supplemental
____
payments to be AFDC expenditures for purposes of matching federal
funds) with, e.g., Winslow v. Commissioner, Me. Dept. of Human
____ ____
_______
__________________________________
Servs., 795 F. Supp. 47,
49-50 (D. Me. 1992) (upholding
______