Kizer

MEMORANDUM OF DECISION

The plaintiff class was certified by this court on March 14,1988, and consists of all persons who have been or will be denied benefits under the California Medicaid program because they have been found to be ineligible for federal Supplemental Security Income (“SSI”) benefits. The plaintiffs challenge the policy adopted by the Secretary of Health and Human Resources (“the Secretary”) to the effect that federal non-disability determinations for SSI supersede previous state agency determinations awarding Medicaid benefits. The Secretary has made it clear that if the state agency does not terminate Medicaid in these instances, federal funds could be withdrawn and the State cited for quality control violations. The parties have stipulated to a temporary restraining order to prohibit such action while this litigation is pending.

The plaintiffs filed a motion for summary judgment that was briefed and argued by counsel on December 11, 1989. On that same day, proposed regulations regarding Medicaid eligibility determinations were published as final by the Secretary. The court took the matter under submission in order to consider the new regulations and the…