Independent Acceptance Co. v. California

CANBY, Circuit Judge:

This case arises from efforts of the State of California to amend its state plan of medical assistance under the Medicaid Act by changing its method of reimbursement for both state-operated and non-state-operated long-term care facilities. The main issue before us is whether the Secretary of Health and Human Services acted arbitrarily or capriciously in approving State Plan Amendments (“SPAs”) 90-20A and 90-20B and other subsequent amendments. We conclude that the Secretary’s approval of the SPAs at issue was neither arbitrary nor capricious.1

THE PARTIES

Plaintiff-Appellant…