Kent

*776 The State Department of Health Care Services and its director (collectively, the Department) appeal from a judgment in favor of plaintiffs on a petition for a writ of mandate. Plaintiffs are 23 federally qualified health centers (FQHC's) and rural health clinics (RHC's) that serve medically underserved populations (the Clinics). ( 42 U.S.C. §§ 254b(a)(1), 1396d( l )(1), (2), 1395x(aa)(2), (4).) The dispute is over coverage for adult dental, chiropractic, and podiatric services the FQHC's and RHC's provided to Medi-Cal patients for a period between 2009 and 2013.

Prior to July 1, 2009, the Department processed and paid claims for these services. In 2009, in a cost-cutting measure due to budget problems, the Legislature enacted Welfare and Institutions Code section 14131.10 1 to exclude coverage for these services (and others) "to the extent permitted by federal law." ( § 14131.10, subd. (d).) After the Department stopped paying claims for these services, various FQHC's and RHC's challenged the validity of section 14131.10, claiming it conflicted with federal Medicaid law.

In California Assn. of Rural Health Clinics v. Douglas (9th Cir. 2013) 738 F.3d 1007 ( CARHC ), the…