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Wednesday, June 15, 2011

Ind. Courts - Chevron and federal administrative agency v. state agency [Updated]

Updating earlier ILB entries, interesting legal issues are developing in the Indiana Planned Parenthood case, per this story by AP reporter Ken Kusmer. Recall this quote from a June 6th IndyStar story:

Pratt seemed to focus on how much weight to give the memo from federal Medicaid officials. She asked both parties to submit over the next 10 days their take on past case law about whether the federal government’s interpretation of federal law should take priority over other interpretations.
From Kusmer's story today:
INDIANAPOLIS (AP) — A federal judge received final arguments Tuesday in Planned Parenthood of Indiana's request to block a tough new abortion law that makes Indiana the first state disqualifying the organization from providing general health services under Medicaid and taking away $1.4 million of its public funding. * * *

Pratt has said she would rule before July 1, but at a hearing June 6 indicated she hoped to rule before Monday, the day Planned Parenthood has said it anticipates running out of donations that have funded care for Medicaid clients since Gov. Mitch Daniels signed the law last month.

A nine-page brief submitted by Planned Parenthood attorney Ken Falk of the American Civil Liberties Union argued the judge should defer to Medicaid Administrator Donald Berwick. Berwick sent a letter to his Indiana counterpart on June 1 saying federal law states beneficiaries can obtain general health services from any qualified provider and the mere fact that Planned Parenthood performs abortions separately does not disqualify it from the state-federal health insurance program for needy and disabled people.

Indiana Solicitor General Thomas Fisher, in his final, eight-page brief filed Monday, said Berwick's letter was "merely the first step" in a lengthy process that could last months over whether Indiana can legally disqualify Planned Parenthood.

Falk has said the law made Indiana the first state to deny Medicaid funds to Planned Parenthood for general health services.

Pratt, during June 6 oral arguments on the injunction, asked Fisher and Falk to file briefs on a legal test known as the Chevron deference that comes from the Supreme Court ruling in Chevron v. Natural Resources Defense Council. Chevron deference generally means that judges do not substitute their own interpretation of agency rules for a reasonable interpretation made by the agency.

Fisher said in his brief that the Berwick letter was not final and authoritative because Indiana can appeal his decision. Indiana opposes the injunction because even though Medicaid doesn't pay for abortions in most cases, the program may provide indirect funding by subsidizing some of Planned Parenthood's overhead costs.

Falk argued in his brief that the letter entitled Berwick to deference.

The ILB hopes to post these briefs re Chevron deference, a familiar principal in environmental law cases. Plus, another familiar principal is being cited here -- exhaustion of administrative remedies ...

[Updated] Okay, here they are:

Posted by Marcia Oddi on June 15, 2011 08:25 AM
Posted to Indiana Courts