Washington State Health Facilities Ass'n v. State of Washington Department of Social & Health Services

The Secretary of Washington State Department of Social and Health Services (DSHS) appeals from an order of the dis *965 trict court enjoining the Secretary from enforcing a state regulation that conflicts with the federally approved Washington State Medicaid Plan, until such time as HEW 1 approves an amendment to the state plan. The state regulation at issue deviates from the official state plan by altering the method of reimbursing nursing care facilities that accept Medicaid patients. We affirm the order granting the injunction and remand the case to the district court for any necessary further proceedings. 2

A state that chooses to participate in Medicaid under the joint federal-state program authorized by Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., must submit a plan to the Secretary of HEW setting forth in detail the manner in which it will fulfill the federal conditions established by the Act and the regulations issued under it. The statute requires the state to set forth in its plan the proposed method for reimbursing nursing care facilities. 42 U.S.C. § 1396a(a)(13)(E). 3 Moreover, the receipt of federal funds is expressly conditioned on HEW approval…