Case: Managed Pharmacy Care v. Maxwell-Jolly

2:09-cv-00382 | U.S. District Court for the Central District of California

Filed Date: 2009

Case Ongoing

Clearinghouse coding in progress

Case Summary

On January 1, 2009, multiple fee-for-service medical providers, including independent pharmacies and an independent living center, filed this action in the Central District of California against the Director of the Department of Health Care Services of the State of California. The Medicaid Defense Fund and private counsel represented the plaintiffs in this action, the Attorney General of California represented the defendant. The plaintiffs sought to enjoin the Director from implementing state…

On January 1, 2009, multiple fee-for-service medical providers, including independent pharmacies and an independent living center, filed this action in the Central District of California against the Director of the Department of Health Care Services of the State of California. The Medicaid Defense Fund and private counsel represented the plaintiffs in this action, the Attorney General of California represented the defendant. The plaintiffs sought to enjoin the Director from implementing state legislation reducing by 5% the reimbursement rates to providers of Pharmacy services to beneficiaries of California's Medi-Cal fee-for-service program. The legislation challenged in this action was put in place to replace a previous bill that would have reduced reimbursement rates by 10%. This previous bill had been partially enjoined by the Central District of California on August 18, 2008 in the related action, Independent Living Center of Southern California, Inc. v. Shewry (PB-CA-0016).

The plaintiffs in the current action argued that the five percent rate reduction violated Title XIX of the federal Social Security Act (the Medicaid Act), 42 U.S.C. § 1396 et seq., and was therefore invalid under the Supremacy Clause. The plaintiff sought declaratory judgment under 42 U.S.C. § 2201.

On February 2, 2009, the plaintiffs filed a motion for preliminary injunction. On February 27, 2009, in Managed Pharmacy Care v. Maxwell-Jolly, 603 F.Supp.2d 1230 (C.D. Cal. 2009), the Central District of California (Judge Christina A. Snyder) issued an order granting the plaintiffs' motion for preliminary injunction. Judge Snyder found that the five percent rate reduction would likely cause irreparable harm to the medical providers as it would force them to distribute medicine at a loss. The balance of hardships also tipped decidedly in the Plaintiffs' favor. The Director then appealed the preliminary injunction to the Ninth Circuit. On March 25, 2010, in Indep. Living Ctr. Of S. Cal., Inc. v. Maxwell-Jolly, 374 Fed. Appx. 690 (9th Cir. 2010), the Ninth Circuit affirmed the order of the district court.

On June 1, 2011, Judge Snyder issued an order removing the case from the Court's active caseload until further application by the parties or order of the Court. Counsel was to file joint reports every quarter until the action was reactivated or a stipulation for dismissal was filed. The first of these joint status reports was filed on July 7, 2011.

Cases related to this case include Independent Living Center of Southern California, Inc. v. Shewry (PB-CA-0016), California Association for Health Services at Home v. Shewry (PB-CA-0017), California Medical Transportation Association, Inc. v. Shewry (PB-CA-0018), California Pharmacists Association v. Maxwell-Jolly (PB-CA-0020), California Medical Association v. Shewry (PB-CA-0021), California Hospital Association v. Maxwell-Jolly (PB-CA-0022), Sierra Medical Services Alliance v. Maxwell-Jolly (PB-CA-0023), National Association of Chain Drug Stores v. Schwarzenegger (PB-CA-0024), California Hospital Association v. Maxwell-Jolly (PB-CA-0025), Development Services Network v. Maxwell-Jolly (PB-CA-0026), California Association of Health Facilities v. Maxwell-Jolly (PB-CA-0027), and California Pharmacists Association v. Maxwell-Jolly (PB-CA-0028).

Related Cases

Independent Living Center of Southern California v. Maxwell-Jolly, Central District of California (2008)

California Medical Association v. Shewry, Central District of California (2008)

California Association For Health Services At Home v. Shewry, Central District of California (2008)

California Medical Transportation Association, Inc. v. Shewry, Central District of California (2008)

California Pharmacists Association v. Maxwell-Jolly, Central District of California (2009)

California Hospital Association v. Maxwell-Jolly, Central District of California (2009)

National Association of Chain Drug Stores v. Schwarzenegger, Central District of California (2009)

California Pharmacists Association v. Maxwell-Jolly, Central District of California (2009)

California Hospital Association v. Maxwell-Jolly, Central District of California (2009)

California Association of Health Facilities v. Maxwell-Jolly; Development Services Network v. Maxwell-Jolly, Central District of California (2010)

Sierra Medical Services Alliance v. Maxwell-Jolly, Central District of California (2010)

Development Services Network v. Maxwell-Jolly, Central District of California (2010)

People


Judge(s)

Fletcher, William A. (California)

Nagle, Margaret A. (California)

Reinhardt, Stephen Roy (California)

Smith, Milan Dale Jr. (California)

Attorneys(s) for Plaintiff

Carman, Lynn S. (California)

Friedman, Stanley Lester (California)

Attorneys(s) for Defendant

Bates, Eric D. (California)

Cardenas, Jesse (California)

Kim, Jennifer M. (California)

Wong, Michele Li (California)

Judge(s)

Fletcher, William A. (California)

Nagle, Margaret A. (California)

Reinhardt, Stephen Roy (California)

Smith, Milan Dale Jr. (California)

Attorneys(s) for Plaintiff

Carman, Lynn S. (California)

Friedman, Stanley Lester (California)

Attorneys(s) for Defendant

Bates, Eric D. (California)

Cardenas, Jesse (California)

Kim, Jennifer M. (California)

Wong, Michele Li (California)

Expert/Monitor/Master

Snyder, Christina A. (California)

Documents in the Clearinghouse

Document

Docket

Independent Living Center v. Maxwell-Jolly

July 7, 2011 Docket
1

Complaint

Jan. 16, 2009 Complaint
10

PLAINTIFFS’ MEMORANDUM IN SUPPORT OF MOTION FOR PRELIMINARY INJUNCTION

Feb. 2, 2009 Pleading / Motion / Brief

In Chambers Opinion on Defendant’s Motion to Alter or Amend, and Clarify the Court’s February 27, 2009

2009 WL 926987

April 3, 2009 Order/Opinion
71

In Chambers Order on Plaintiff's Motion to Enforce Preliminary Injunction

Nov. 2, 2009 Order/Opinion

Ninth Circuit Opinion

Independent Living Center of Southern California v. Maxwell-Jolly

U. S. Court of Appeals for the Ninth Circuit

374 Fed.Appx. 690, 2010 U.S.App.LEXIS 4540

March 3, 2010 Order/Opinion

Docket

Docket sheet not available via the Clearinghouse.

State / Territory: California

Case Type(s):

Public Benefits/Government Services

Key Dates

Filing Date: 2009

Case Ongoing: Yes

Plaintiffs

Plaintiff Description:

Several fee-for-service medical providers, including independent pharmacies and an independent living center

Plaintiff Type(s):

Private Plaintiff

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

State of California, State

Case Details

Causes of Action:

Declaratory Judgment Act, 28 U.S.C. § 2201

Medicaid, 42 U.S.C §1396 (Title XIX of the Social Security Act)

Availably Documents:

Trial Court Docket

Complaint (any)

Injunctive (or Injunctive-like) Relief

Any published opinion

Outcome

Prevailing Party: None Yet / None

Nature of Relief:

None yet

Source of Relief:

None yet

Issues

Benefit Source:

Medicaid