OREGON DEPARTMENT OF HUMAN RESOURCES, Petitioner, v. DEPARTMENT OF HEALTH & HUMAN SERVICES, Respondent

The Oregon Department of Human Resources seeks review of a Department of Health and Human Services decision to disallow Oregon’s claim for federal financial participation in certain administrative costs connected with the Oregon Aid to Families with Dependent Children-Foster Care program. The DHHS moved to dismiss, contending that this appeal is not properly before us, because we lack jurisdiction to review a claim disallowance. Oregon, opposes the motion, arguing that the DHHS erred in referring to the claim as a disallowance, and that this is really a plan noncompliance dispute, for which there is review by the Court of Appeals. We hold that we must defer to the DHHS classification of Oregon’s claim as a disallowance, and dismiss the appeal for lack of jurisdiction.

I.

FACTS

Oregon submitted to the DHHS an amendment of its Social Security Act cost allocation program, transferring certain administrative costs from its Title XX (discretionary social services) to its Title IV-A (AFDC) program. The purpose of the transfer was to obtain federal financial participation in the payment of Oregon’s Children’s Services Division staff, since federal funds are more freely available under…