U.S. Supreme Court: Hawaii has authority to reduce health care coverage to noncitizens

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The U.S. Supreme Court has validated the state’s authority to determine the level of health care coverage provided to noncitizens who are ineligible for federal Medicaid, Attorney General David M. Louie and Director of Human Services Patricia McManaman jointly announced Monday. The high court’s decision also confirms that the state did not discriminate when it exercised that authority in 2010.

The U.S. Supreme Court has validated the state’s authority to determine the level of health care coverage provided to noncitizens who are ineligible for federal Medicaid, Attorney General David M. Louie and Director of Human Services Patricia McManaman jointly announced Monday. The high court’s decision also confirms that the state did not discriminate when it exercised that authority in 2010.

On Monday, the court rejected plaintiffs’ appeal in Korab v. McManaman, which leaves intact the Ninth Circuit Court of Appeals decision in favor of the state. That decision found the state was not required provide state-funded medical assistance benefits to noncitizens after the federal Medicaid program excluded them.

The federal Welfare Reform Act of 1996 eliminated federal health care funding for many noncitizens, including migrants from Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia. These island nations have a Compact of Free Association with the U.S. that allows their citizens to live and work in the U.S.

Even after federal funds were not available, the state continued state-funded medical assistance benefits for COFA residents. The benefits provided were essentially the same as citizens received under federal Medicaid until 2010 when the state sought to implement a more limited program for noncitizens. The plaintiffs in the Korab case were noncitizen COFA residents whose benefits would have been reduced under the 2010 program. Federal District Court Judge Michael Seabright sided with the plaintiffs and issued an injunction blocking implementation of the program in 2010.

The Ninth Circuit Court of Appeals reversed the decision of the District Court earlier this year, and held that Hawaii is not required to replace the federally funded health care benefits that were lost under the federal Welfare Reform Act. The state has remained subject to the injunction pending the decision by the U.S. Supreme Court, and expects the Federal District Court to dissolve the injunction shortly.

Adult noncitizens who are not pregnant, and are not aged, blind, or disabled, and who were eligible beneficiaries under the injunction, will continue to receive their current level of benefits until the new programs are implemented. Those beneficiaries will soon receive a notice in the mail explaining the changes, and they should contact the Department of Human Services at the number provided on the notice if they have any questions.