Judge rules in post-Chevron Medicaid case

U.S. District Judge Lisa Godbey Wood on Monday ruled that the federal Centers for Medicare and Medicaid Services (CMS) rightfully rejected Georgia’s request to extend one of its Medicaid programs. CMS found that Georgia had not followed the proper procedure when it requested an extension to its Georgia Pathways program and therefore was not eligible to receive federal funding for it.

What are the details of this case? The Georgia Pathways to Coverage program sought to provide state health insurance to people who didn’t qualify for the state’s main Medicaid program, Wood explained in her Monday decision. The program contained eligibility requirements that CMS previously agreed to, including that individuals receiving health insurance through Georgia Pathways work at least 80 hours a month and pay a small monthly premium. CMS withdrew its approval for the program, and Georgia sued. Wood sided with the state of Georgia in August 2022.

Georgia then had to reassemble aspects of the program before trying to launch it in the summer of 2023. Georgia asked for an extension of its original agreement with CMS, but the agency refused to grant one. Wood’s decision on Monday means that Georgia Pathways is no longer approved for federal funding after Sept. 30, 2025.

Why is this noteworthy to people outside Georgia? Wood’s decision followed the U.S. Supreme Court’s ruling last month overturning its decades-old Chevron v. Natural Resources Defense Council decision. Under Chevron, courts had to defer to agencies’ interpretations of otherwise vague laws. Under the high court’s new precedent, courts must exercise their independent judgment when determining whether an agency has properly interpreted and enforced a federal law. In this case, Woods did so and found that the Centers for Medicare and Medicaid Services properly followed federal law.

Dig deeper: Read Erin Hawley’s column in WORLD Opinions explaining the significance of the Supreme Court striking down Chevron.