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LEWIS v. ALEXANDER

No. 11-3439.

685 F.3d 325 (2012)

Zackery D. LEWIS, by his next friends; Richard Young; Lynn G. Hainer, Administratrix of the Estate of Addie Smith; Susan W. Coleman; Kathy A. Burger; Tracy Palmer; Kenny Atkinson, by his next friend; Bernice Tate, by her next friend; Mary Wagner; Michael Bidzilya, by his next friend; William Algar, by his next friend; Anthony Gale, by his next friends; The Arc Community Trust of Pennsylvania; The Family Trust, on their own behalf and on behalf of all other persons similarly situated v. Gary ALEXANDER, in official capacity as Secretary of Department of Public Welfare of the Commonwealth of Pennsylvania; Eric Rollins, in official capacity as Executive Director of the Erie County Assistance Office, Appellants.

United States Court of Appeals, Third Circuit.

Filed: June 20, 2012.

Attorney(s) appearing for the Case

Stephen A. Feldman, Esq. (Argued), Feldman & Feldman, Jenkintown, PA, for Appellee.

Jason W. Manne, Esq. (Argued), Office of General Counsel, Department of Public Welfare, Pittsburgh, PA, for Appellant.

Shirley B. Whitenack, Esq. , Schenck, Price, Smith & King, Florham Park, NJ, for Amicus Appellees.

Before: FUENTES, SMITH, and JORDAN, Circuit Judges.

OPINION

SMITH, Circuit Judge.

I

This case involves the interaction between state and federal law under the Medicaid system, a cooperative program between the state and federal governments to provide medical assistance to those with limited financial resources. Seeking to stamp out abusive manipulation of trusts to hide assets and thereby manufacture Medicaid eligibility, Congress created a comprehensive system of rules mandating that trusts be...

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