Smith v. Concannon

938 F.2d 966 34 Soc.Sec.Rep.Ser. 237, Medicare&Medicaid Gu 39,460 Brenda SMITH, for herself and as next friend of her minor daughter; Reyanna Smith, and on behalf of all others similarly situated, Plaintiffs-Appellants, v. Kevin CONCANNON, Director, Department of Human Resources; Stephen Minnich, Administrator, Adult and Family Services Division, Defendants-Appellees. No. 90-35138. United States Court of Appeals, Ninth Circuit. Argued and Submitted Sept. 11, 1990. Decided July 10, 1991. Lorey H. Freeman, Legal Aid Services, Portland, Or., for plaintiffs-appellants. John Bagg, Asst. Atty. Gen., Salem, Or., for defendants-appellees. Appeal from the United States District Court for the District of Oregon. Before CANBY, KOZINSKI and TROTT, Circuit Judges. CANBY, Circuit Judge: 1 In 1981, Congress enacted the "lump sum" rule that rendered recipients of Aid to Families with Dependent Children ("AFDC") ineligible for AFDC benefits for a period of time after they receive a lump sum of money from outside sources. 42 U.S.C. Sec. 602 (a)(17). This appeal challenges Oregon's application of that lump-sum rule to its Medicaid program. 2 Brenda Smith and her children were receiving AFDC…