Edwards

Defendants Department of Health Services, Department of Finance, and the Director of each (State), as well as the Director of the Los Angeles County Department of Public Social Services (County), appeal from an order granting a preliminary injunction restraining them from terminating payment of Medi-Cal benefits to certain recipients. In a previous opinion, we held the terminations proper. Pursuant to the direction of our Supreme Court, we have reconsidered the matter in light of Crippen v. Kheder (6th Cir. 1974) 741 F.2d 102 , and hold, in conformance therewith, that Medi-Cal recipients who are no longer automatically eligible for such benefits are nonetheless entitled to continue receiving them until re-determination of their eligibility under other, nonautomatic, Medi-Cal categories.

Subchapter XIX of the Social Security Act established the Medicaid program to provide federal financial assistance to states choosing to reimburse needy persons for certain medical treatment costs. ( 42 U.S.C. § 1396 et seq.) States electing to participate in the program must comply with all requirements of the act and with regulations promulgated by the Secretary of the Department of…